Based on the Following Data, What Is the Accounts Receivable

question 10

Multiple Choice

Based on the following data, what is the accounts receivable turnover
$\begin{array}{lr}\text { Sales on account during year } & \$ 700,000 \\\text { Cost of goods sold during year } & 270,000 \\\text { Accounts receivable, beginning of year } & 45,000 \\\text { Accounts receivable, end of year } & 35,000 \\\text { Inventory, beginning of year } & 90,000 \\\text { Inventory, end of year } & 110,000\end{array}$

• A) 17.5
• B) 2.6
• C) 20.0
• D) 15.5

Comprehend the techniques for managing and financing working capital, including the use of marketable securities.

Recognize the cost implications of offering trade credit discounts and the use of stretching accounts payable.

Identify the purposes and differences between short-term and long-term cash budgets.

Understand the principles guiding the use of trade credit and the evaluation of credit cost.