Select from the Following List the Letter of the Ratio $\frac{\text { Average net accounts receivable}}{\text { One day's sales}}$

question 141

Multiple Choice

Select from the following list the letter of the ratio title for the formula provided in the question.
-Select the letter of the ratio title that corresponds to the following formula.
$\frac{\text { Average net accounts receivable}}{\text { One day's sales}}$

• A)Current ratio
• B)Acid-test (quick) ratio
• C)Inventory turnover
• D)Accounts receivable turnover
• E)Day's sales in average accounts receivable
• F)Debt ratio
• G)Times-interest-earned ratio
• H)Rate of return on net sales (profit margin)
• I)Rate of return on total assets
• J)Rate of return on common shareholders' equity
• K)Earnings per common share
• L)Price/earnings ratio
• M)Dividend yield
• N)Book value per common share

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Definitions:

Rate Of Return

The increase or decrease in value of an investment over a certain period, shown as a percent of the investment's original cost.

Compounded Annually

The process where the interest earned on an investment is reinvested, and future interest payments are calculated on the principal plus previously earned interest.

Ending Balance

The total amount remaining in an account at the conclusion of a reporting period or after a specific transaction has been completed.

Compounded Annually

Refers to the process where the interest earned on an investment is added to the principal sum at the end of each year, then interest for the next period is calculated on the new principal.