The Accounts Receivable Turnover Ratio for a Merchandiser Is 9

question 80

Multiple Choice

The accounts receivable turnover ratio for a merchandiser is 9.6 times.Calculate the days' sales in receivables for the merchandiser.(Round your answer to the nearest day. )

• A)34 days
• B)38 days
• C)29 days
• D)41 days

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Definitions:

Sale

The exchange of goods, services, or property for money or its equivalent.

Finance Lease

A type of lease in which the lessee has use of the asset for a longer period, which is most of the asset's useful life, and the lease payments cover the full cost of the asset.

Usage Of Trade

Usage of trade refers to the regular practices and methods of dealing in a certain business or trade, which can be considered in interpreting contracts.

Unconscionability

A legal principle related to contracts that are so one-sided or unfair to one of the parties that they are considered voidable.