Alliance Software Began 2013 with Accounts Receivable of $115,000

question 81

Multiple Choice

Alliance Software began 2013 with accounts receivable of $115,000. All sales are made on credit. Sales and cash collections from customers for the year were $780,000 and $700,000, respectively. Cost of goods sold for the year was $450,000. What was Alliance's receivables turnover ratio (rounded) for 2013?

• A)4.00.
• B)5.03.
• C)2.90.
• D)6.78.

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Definitions:

Partnership Interest

Partnership Interest denotes an ownership share in a partnership, representing a partner's stake in the profits, losses, and assets of the partnership.

Current Fair Values

The price at which an asset would be bought or sold in a current transaction between willing parties, other than in a liquidation sale.

Allocation of Salaries

Allocation of salaries involves distributing payroll expenses to different departments, projects, or activities based on their usage or involvement in the business operations.

Partnership Management

The governance and operational strategies employed by partners in a business venture to ensure efficient collaboration and achievement of mutual goals.