Dividing Accounts Receivable by Net Sales and Multiplying the Result

question 133

Multiple Choice

Dividing accounts receivable by net sales and multiplying the result by 365 is equal to the:

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

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Definitions:

Mortgage

A legal agreement by which a bank, credit union, or other lender lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Mortgage Loans

A loan secured by the collateral of some specified real estate property which the borrower is obliged to pay back with a predetermined set of payments.

Mortgage Insurance

An insurance policy designed to protect the lender from the risk of default and foreclosure on a mortgage.

Down Payment

The part of the purchase price of real property that is paid in cash up front, reducing the amount of the loan or mortgage.