Net Accounts Receivable Is Calculated As

question 111

Multiple Choice

Net accounts receivable is calculated as:

• A) sales less sales returns and allowances
• B) accounts receivable less bad debt expense
• C) accounts receivable less allowance for uncollectible accounts
• D) accounts receivable plus allowance for uncollectible accounts

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Definitions:

Operating Leverage Factor

A measure that quantifies the proportion of fixed versus variable costs in a company's operating structure, indicating sensitivity to changes in sales volume.

Contribution Margin Ratio

The contribution margin ratio is the percentage of revenue that exceeds total variable costs, indicating how much of the sales revenue is available to cover fixed costs and generate profit.

Sales Dollars

The total revenue generated from the sale of goods or services, expressed in monetary units.

After Tax Profit

The net income a company retains after deducting all taxes owed to the government.