Dividing Accounts Receivable by Net Sales and Multiplying the Result

question 133

Multiple Choice

Dividing accounts receivable by net sales and multiplying the result by 365 is equal to the:

• A)Profit margin.
• B)Days' sales uncollected.
• C)Accounts receivable turnover ratio.
• D)Average accounts receivable ratio.
• E)Current ratio.

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Definitions:

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The part of the brain located at the front of the frontal lobe, associated with decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

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The inability or unwillingness to change one's thinking or to adapt one's thoughts to new information or situations.

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Relating to or affected by mania, a mental state characterized by excessive excitement, energy, and sometimes delusions or hallucinations.

Powerful

Having great power, influence, or effect; capable of causing significant change or impact.