During a Given Year,Compaq Had Net Sales of $32,000 Million

question 125

True/False

During a given year,Compaq had net sales of $32,000 million and average account receivables were $6,850 million.Its accounts receivable turnover is equal to 0.21.

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Definitions:

Pension Expense

The cost recognized by an employer for contributions to pension plans on behalf of its employees for the current period.

Salaries Expense

An account that represents the total amount paid to employees for services rendered during a specific period, usually before any deductions.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventories.

Current Portion

Refers to the portion of long-term debt or leases that is due to be paid within the next year.