At the Beginning of the Year,Vici Ventures Had Accounts Receivable

question 95

Multiple Choice

At the beginning of the year,Vici Ventures had accounts receivable of $220,000.At the end of the year,the company had accounts receivable of $340,000.During the year,Vici had total sales of $1,000,000,70% of which were credit sales.What was Vici's receivables turnover ratio for the year?

• A)2.50.
• B)3.57.
• C)2.94.
• D)146 days.

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Definitions:

Journal Entries

The recording of financial transactions in a company's accounting system, which includes a debit and a credit to maintain balance.

Salaries and Wages Expense

The total amount a company spends on employee salaries, wages, and other benefits during a fiscal period.

Ledger Account

A record within a ledger that contains a log of financial transactions for a specific asset, liability, equity, revenue, or expense.

Accounts Receivable

Funds that clients or customers have yet to pay to a company for products or services already provided.