Based on the Following Data for the Current Year, Determine

question 13

Multiple Choice

Based on the following data for the current year, determine the accounts receivable turnover? $\begin{array}{ll}\$ 500,000 & \text { Net sales on account during the year } \\300,000 & \text { Cost of merchandise sold during the yeat } \\45,000 & \text { Accounts receivable, be ginning of year } \\35,000 & \text { Accounts receivable, end of year } \\90,000 & \text { Inventory, be ginning of year } \\110,000 & \text { Inventory, end of year }\end{array}$

• A) 12.5
• B) 14.3
• C) 11.1
• D) 7.5

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Definitions:

Purchase and Payment

Purchase and payment refer to the process of acquiring goods or services and subsequently settling the obligation to pay for these goods or services.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the company's financial position.

Foreign Exchange Gain

Profit derived from the appreciation of one currency against another in the context of foreign exchange trading or transactions.