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

question 48

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

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Definitions:

Output

The total quantity of goods or services produced or supplied by a firm or economy within a certain period.

Product Price

The amount of money required to purchase a specific good or service offered in the market.

Units of Output

Measures the quantity of production or goods produced by a firm or industry during a given time period.

Purely Competitive Market

A market structure characterized by many sellers and buyers, homogeneous products, and easy entry and exit, leading to a situation where no single participant has market control.