Use the Information Below to Answer the Following Questions

question 40

Multiple Choice

Use the information below to answer the following questions:
Alda Ltd’s average trade debtors for year ended 30 June 2012 was $150 000. Cost of goods sold was $382 500 and the gross margin was 15%. All sales are made on credit.
-What was the accounts receivable turnover?

• A) 2.93 times p.a.
• B) 2.55 times p.a.
• C) it cannot be determined from the information provided
• D) 3 times p.a.

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Definitions:

Lender

An individual, a financial institution, or a group that provides funds to others with the expectation that the funds will be repaid, typically with interest.

Inflation Rate

The rate at which the cost of goods and services rises within an economy over a specific period.

Nominal Interest

The rate of interest before adjustment for inflation, representing the face value of borrowed money and the income from lending investments.

Frictional Unemployment

A form of unemployment that occurs when individuals are temporarily between jobs, entering the workforce, or transitioning from one position to another.