Net Sales Divided by Average Accounts Receivable Is Equal to The

question 86

Multiple Choice

Net sales divided by average accounts receivable is equal to the:

• A)Days' sales uncollected.
• B)Average accounts receivable ratio.
• C)Current ratio.
• D)Profit margin.
• E)Accounts receivable turnover ratio.

---

Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee without having control or joint control over those policies.

Presumptive Test

A preliminary test based on presumptions established by criteria or evidence that suggests or implies a certain condition or outcome.

Voting Power

The right of shareholders to vote on corporate matters, usually proportional to the number of shares they hold.

Equity Stakeholding

Ownership interest in a company, usually represented by holding shares of the company's stock.