The Following Balance Sheet Information Was Provided by O'Connor Company

question 119

Multiple Choice

The following balance sheet information was provided by O'Connor Company: $\begin{array}{|l|r|r|}\hline \text { Assets } & 2014 & 2013 \\\hline \text { Cash } & \$ 4,000 & \$ 2,000 \\\hline \text { Accounts receivable } & 15,000 & 12,000 \\\hline \text { Inventory } & \$ 35,000 & \$ 38,000 \\\hline\end{array}$ Assuming that net credit sales for the year 2014 totaled $270,000, what is the company's most recent accounts receivable turnover?

• A) 18 times
• B) 20 times
• C) 22.5 times
• D) 7.7 times

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Definitions:

Seller To Buyer

The transfer of products, services, or assets from the seller to the buyer in a market transaction.

Ownership Utility

Orderly transfer of goods and services from the seller to the buyer; also called possession utility.

Exchange

A platform or marketplace where goods, services, or securities are traded between parties.

Time Utility

The value added to products or services by making them available when they are needed.