A Company Has Net Sales of $870,000 and Average Accounts

question 126

Multiple Choice

A company has net sales of $870,000 and average accounts receivable of $174,000.What is its accounts receivable turnover for the period?

• A)0.20
• B)5.00
• C)20.0
• D)73.0
• E)1,825

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Definitions:

Transportation Costs

Expenses involved in moving goods or services from one location to another.

Real Price

The market price adjusted for inflation, showing the purchasing power of an amount of money.

CPI

The Consumer Price Index represents a calculated average of the prices for a mix of consumer products and services, including food, transportation, and healthcare, weighted by their importance.

Geographic Extent

The area or scope over which a specific phenomenon, activity, or influence is spread.