Dividing Accounts Receivable by Net Sales and Multiplying the Result

question 133

Multiple Choice

Dividing accounts receivable by net sales and multiplying the result by 365 is equal to the:

• A)Profit margin.
• B)Days' sales uncollected.
• C)Accounts receivable turnover ratio.
• D)Average accounts receivable ratio.
• E)Current ratio.

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Definitions:

Competition

The alternative firms that could provide a product to satisfy a specific market’s needs.

Organizational Markets

Markets that involve the sale of goods or services to other businesses, government bodies, or institutions, rather than to individual consumers.

Examples

Specific instances or cases that are used to illustrate a principle, method, or situation.

Reverse Auction

An auction format in which sellers bid to offer goods or services at the lowest price to a buyer, reversing the traditional auction model.