If the Accounts Receivable Turnover Is 42 Days, What Is

question 5

Multiple Choice

If the accounts receivable turnover is 42 days, what is the account receivable turnover ratio (assuming a 365 day year) ?

• A) 7.14 times
• B) 8.69 times
• C) 4.52 times
• D) None of these

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Definitions:

Research and Development

Activities undertaken by businesses or organizations to innovate and introduce new products or services, typically involving substantial investment.

Technological Feasibility

The point at which a company determines that a new technology can be developed and made into a working product.

Software Development Costs

Expenses incurred in the research, development, design, and testing of software, which may be capitalized or expensed depending upon their nature and the accounting policies followed.

Long-lived Assets

Assets expected to provide economic benefits over a period longer than one year, such as buildings, machinery, and equipment.