Assuming a 365 Day Year,Bush Industries Calculated an Average of 47

question 80

Multiple Choice

Assuming a 365 day year,Bush Industries calculated an average of 47 days to collect its accounts receivable in 2015.During 2015,Bush's accounts receivable turnover rate:

• A)Was approximately 7.77.
• B)Was equal to 47 times its average accounts receivable.
• C)Was approximately 0.13.
• D)Can't be determined from this information alone.

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Definitions:

Residual Value

The estimated remaining value of an asset at the end of its useful life.

Units-of-Production Method

A depreciation method that allocates expense based on the actual usage or output of the asset, reflecting its wear and tear more accurately.

Depreciation Expense

A financial approach to distribute the expense of a physical asset throughout its operational lifespan.

Residual Value

The estimated value that an asset will have at the end of its useful life, after factoring in depreciation or amortization.