During a Given Year,a Company Had Net Sales of $500,000

question 89

True/False

During a given year,a company had net sales of $500,000 and average accounts receivable of $80,000.Its accounts receivable turnover is equal to 6.25.

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Definitions:

Operating Lease

A contract that allows for the use of an asset but does not convey rights of ownership of the asset.

Owns the Asset

Refers to having legal title or right to possession of an asset, implying control over its use and the benefits it produces.

Lessee

The party in a lease agreement who pays the lessor for the use of an asset.

Lessor

The party in a lease agreement who owns the leased asset and grants the lessee the right to use that asset in exchange for periodic lease payments.