Accounts Receivable Turnover Equals

question 154

Multiple Choice

Accounts receivable turnover equals:

• A)days' sales in receivables.
• B)average collection period.
• C)average net accounts receivable.
• D)net credit sales divided by average net accounts receivable.

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Definitions:

Income Statements

A financial statement that records a company's revenues and expenses over a specific period, showing net profit or loss.

Contribution Format

A structure of the income statement that distinguishes between fixed and variable expenses to emphasize the contribution margin.

Merchandising Company

A type of business that derives its revenue from retailing or wholesaling products it does not manufacture.

Traditional Format

A standard or conventional method of presenting financial information, such as income statements or balance sheets, that follows established accounting principles.