A Retailer Typically Has Half of Its Sales on Credit;the

question 33

Multiple Choice

A retailer typically has half of its sales on credit;the balance of sales are by cash,check,or debit card.Credit sales are payable in full in 30 days.The retailer's collection period is 25 days.The retailer has _____.

• A)slow-turning accounts receivable
• B)fast-turning accounts receivable
• C)average-turning accounts receivable
• D)high financial leverage

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Definitions:

Direct Labour Hours

are the hours worked by employees directly involved in the production of goods and services.

Standard Quantity

The predetermined or estimated amount of materials or inputs needed to produce a single unit of output.

Direct Materials

Basic substances that can be directly linked to the production of a particular item.

Standard Costing

Standard Costing is an accounting method that utilizes standard costs for materials, labor, and overhead for the purpose of controlling costs and identifying variances.