Smart and Smiley Incorporated Has an Average Collection Period of 74

question 2

Multiple Choice

Smart and Smiley Incorporated has an average collection period of 74 days. What is the accounts receivable turnover ratio for Smart and Smiley?

• A) 4.93
• B) 2.47
• C) 2.66
• D) 1.68

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Definitions:

Marginal Costs

The rise in the overall expense incurred from the production of an extra unit of a good or service.

Potential Customers

Individuals or organizations that could become purchasers of a product or service, but have not yet done so.

Expected Profit

The forecasted amount of profit based on potential outcomes and their probabilities.

Price

The financial sum anticipated, needed, or handed over as payment for an item.