Nickel Store Had Net Credit Sales of $15,000,000 and Cost

question 132

Multiple Choice

Nickel Store had net credit sales of $15,000,000 and cost of goods sold of $5,000,000 for the year.The Accounts Receivable balances at the beginning and end of the year were $875,000 and $375,000 respectively.The accounts receivable turnover ratio was:

• A) 15 times.
• B) 10 times.
• C) 11 times.
• D) 24 times.

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Definitions:

Organization's Cost Performance

The measure of how efficiently an organization controls its expenses in relation to its revenues or operational activities.

Job Order Cost Accounting

A system used to calculate the costs associated with a specific job or order, tracking direct labor, direct materials, and overhead.

Service Business

A type of business that provides intangible products or services to its customers rather than selling physical goods.

Factory Overhead Rate

A calculation used in manufacturing to allocate indirect costs, such as utilities and rent, to individual units of production.