With a Beginning Accounts Receivable Balance of $20,000,an Ending Balance

question 107

Multiple Choice

With a beginning Accounts Receivable balance of $20,000,an ending balance of $26,000,and net credit sales of $408,000,compute accounts receivable turnover ratio.

• A)0.05
• B)20.4
• C)17.7
• D)68

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Definitions:

Revenue Account

An account that tracks the income generated from normal business operations over a certain period.

Sales Taxes

Taxes imposed by governments on the sale of goods and services, collected by retailers and passed on to tax authorities.

Product Service

A term typically referring to the offering or provision of products and services by a business.

Refund Liability

An obligation recorded by a company to reflect anticipated refunds to customers for returned or unsatisfactory products.