The Accounts Receivable Turnover Ratio of a Merchandiser Is 9

question 21

Multiple Choice

The accounts receivable turnover ratio of a merchandiser is 9.8 times. Calculate the days' sales in receivables for the merchandiser. (Round to the nearest day.)

• A)33 days
• B)37 days
• C)28 days
• D)40 days

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Definitions:

Pay Differential

The difference in payment rates based on factors such as job function, location, or hours worked.

Market Forces

Economic factors that influence the supply, demand, and pricing of goods and services without direct governmental intervention.

Exempt Employees

Managers, outside salespeople, and any other employees not covered by the FLSA requirement for overtime pay.

Pay Rates

The amount of money an employee receives for their work, often determined by hour, salary, or piece rate.