Martin Sales Provides the Following Information

question 98

Multiple Choice

Martin Sales provides the following information:
Net credit sales: $790,000
Beginning net accounts receivable: $43,000
Ending net accounts receivable: $20,000
Calculate the accounts receivable turnover ratio.(Round your answer to the nearest whole number. )

• A)18 times
• B)25 times
• C)40 times
• D)37 times

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Definitions:

Interest Rate

The percentage of the loan amount charged to the borrower as interest, usually presented as an annual rate.

IFRS

The International Financial Reporting Standards are a set of global accounting standards developed by the IFRS Foundation for preparing financial statements.

Receivables

Short-term financial assets typically arising from sales of goods or services on credit that a company expects to collect within a year.

Reported Separately

Items or transactions that are significant enough to be listed individually in financial statements or reports to enhance clarity.