A Company Has Net Sales of $1,200,000 and Average Accounts

question 92

Multiple Choice

A company has net sales of $1,200,000 and average accounts receivable of $400,000.What is its accounts receivable turnover for the period?

• A)0.33
• B)5.00
• C)20.0
• D)73.0
• E)3.0

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Definitions:

Conversion Value

The financial worth of a convertible security if it is converted into a different form, usually shares of the company's common stock.

Straight Bond Value

The value of a bond that pays fixed interest payments and does not have any additional features such as convertibility or callable options.

Conversion Value

The worth of a convertible security if it is converted into a different asset, usually common stock, at the current market price.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the issuing company's equity at certain times during the bond's life, usually at the discretion of the bondholder.