Calculate C Co's Receivables Turnover Ratio and the Days' Sales

question 7

Multiple Choice

Calculate C Co's receivables turnover ratio and the days' sales in receivables for 2012.

• A)11.43 times and 31.9 days
• B)11.02 times and 33.1 days
• C)11.15 times and 32.7 days
• D)3.47 times and 105.2 days

Know the structure of the contribution margin income statement and its use in classifying costs by behavior.

Understand the principles of activity-based costing (ABC) and its application in internal decision-making.

Differentiate between different types of costs in ABC including direct, indirect, manufacturing, and non-manufacturing costs.

Identify and classify activities in cost pools and compute activity rates.

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Definitions:

Fraudulent Alteration

The illegal modification of a document or instrument in a manner that changes its legal rights or obligations, intended to deceive or defraud.

Electronic Signatures

Digital forms of a signature used to consent or approve documents and contracts electronically.

Holder in Due Course

A legal term that refers to a person who has received a negotiable instrument in a certain way that grants them the right to collect it free from many defenses.

Disclose

To reveal or make known information, often in the context of legal, financial, or commercial transactions.