The Accounts Receivable Turnover Rate

question 84

Multiple Choice

The accounts receivable turnover rate:

• A)Indicates how many times the receivables were converted into cash during the year.
• B)Is computed by dividing average receivables by sales.
• C)Indicates the average number of days a business waits to make collection on a credit sale.
• D)Indicates the proportion of a company's accounts receivable that the independent auditors were unable to confirm.

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Definitions:

Sodium/Potassium Pumps

A type of active transport mechanism that moves sodium ions out of and potassium ions into cells, essential for maintaining cellular function and homeostasis.

Receptor Sites

Specific locations on the surface of a cell or within a cell where molecules such as hormones, neurotransmitters, or drugs can bind to elicit a physiological response.

Ions

Atoms or molecules with a net electric charge due to the loss or gain of one or more electrons.

Neurotransmitters

Chemicals released by neurons that transmit signals across a chemical synapse, from one neuron to another target neuron, muscle cell, or gland cell.