Accounts Receivable Turnover Is Calculated by

question 19

Multiple Choice

Accounts receivable turnover is calculated by

• A) Dividing net sales by average accounts receivable
• B) Dividing net sales by average accounts receivable and multiplying by 365
• C) Dividing average accounts receivable by net sales
• D) Dividing average accounts receivable by net sales and multiplying by 365
• E) Dividing net income by average accounts receivable

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), assuming all inputs are used efficiently.

Economic Growth

Refers to the increase in the production of economic goods and services, from one period to another, often measured by GDP (Gross Domestic Product).

Technological Advance

The development of new technologies or the improvement of existing technologies to enhance productivity, efficiency, or quality in goods and services.

Opportunity Cost

The economic impact of rejecting the following preferable option when deciding.