A Company Had an Accounts Receivable Turnover Ratio of 8

question 102

Multiple Choice

A company had an accounts receivable turnover ratio of 8 and net sales of $600,000 for a given period.What was the average accounts receivable amount for this period?

• A)$4,800,000.
• B)$2,919.99.
• C)$205.48.
• D)$75,000.
• E)Average accounts receivable cannot be determined from this information.

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Definitions:

Independent-Samples T-Test

A statistical test used to determine if there is a significant difference between the means of two groups which are independent of each other.

Dependent-Samples T-Test

A numeric examination technique for assessing whether the mean values of two correlated groups differ significantly.

Regression

A statistical method used to determine the relationship between two or more variables, where one or more independent variables are used to predict the outcome of a dependent variable.

Analysis of Variance

A statistical procedure used to compare the means of three or more samples to determine if at least one of the sample means is significantly different from the others.