Bonine Corporation Has Provided the Following Data The Accounts Receivable Turnover for This Year Is Closest To

question 26

Multiple Choice

Bonine Corporation has provided the following data: $\begin{array}{lrr}&\text { This Year } & \text { Last Year } \\\text {Accounts receivable }&\$ 88,000 & \$ 106,000 \\\text { Inventory}&\$ 178,000 & \$ 191,000 \\\text {Sales on account }&\$ 867,000 & \\\text {Cost of goods sold }&\$ 685,000 &\end{array}$

The accounts receivable turnover for this year is closest to:

• A)0.83
• B)8.94
• C)9.85
• D)1.20

---

Definitions:

Units Sold

A measure of the quantity of inventory items that a company has sold to its customers within a particular period.

Prime Cost

The combined cost of direct materials and direct labor involved in manufacturing a product.

Period Costs

Expenses directly tied to a specific time period, such as rent, utilities, and administrative salaries, and not directly to the production process.

Units Sold

The number of individual items that have been sold over a specified period.