The Numerator Used to Calculate Accounts Receivable Turnover Is

question 158

Multiple Choice

The numerator used to calculate accounts receivable turnover is

• A) total sales
• B) net sales
• C) accounts receivable at year-end
• D) average accounts receivable

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Definitions:

Financial Statements

Consolidated documents that track and report an entity's financial performance and health, including balance sheet, income statement, and cash flow statement.

Balance Sheet

A financial statement that presents the financial position of a company at a specific point in time.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, resulting in a net profit or loss.

Statement of Retained Earnings

A financial statement that shows how a company's retained earnings have changed over a given period due to profits retained in the business or dividends distributed.