The Numerator in Calculating the Accounts Receivable Turnover Is

question 173

Multiple Choice

The numerator in calculating the accounts receivable turnover is

• A) total assets
• B) sales
• C) accounts receivable at year-end
• D) average accounts receivable

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Definitions:

Aging of Accounts Receivable

The process of categorizing accounts receivable according to the length of time an invoice has been outstanding.

Age Group

A classification of people based on their age, often used in demographics and marketing.

Number of Days

Often refers to the time period used in finance and accounting to calculate interest, production times, or deadlines.

Balance Sheet Approach

A method focusing on a company's balance sheet to assess its financial condition by analyzing assets, liabilities, and equity at a specific point in time.