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:

Legal Corporation

A legal corporation is an entity that is legally recognized as a separate entity from its owners, providing limited liability protection to its shareholders.

Business Combination

The process of merging two or more companies into one entity, which includes acquisitions and consolidations.

Pooling of Interest Method

An accounting method used in mergers and acquisitions, where the combined assets and liabilities of the merging entities are recorded at their historical costs.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.