Assuming a 365 Day Year,Gore Industries Calculated an Average of 53

question 130

Multiple Choice

Assuming a 365 day year,Gore Industries calculated an average of 53 days to collect its accounts receivable in 2015.During 2015,Gore's accounts receivable turnover rate:

• A)Was approximately 6.89.
• B)Was equal to 53 times its average accounts receivable.
• C)Was approximately 0.15.
• D)Can't be determined from this information alone.

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Definitions:

Quantum Meruit

A legal principle meaning "as much as he has earned," used to determine compensation based on the value of services rendered when no contract price is agreed upon.

Valid Contract

A legally binding agreement between parties that meets all required elements, such as offer, acceptance, consideration, and lawful purpose.

Eliminates Need

Removes the requirement or necessity for something, making it unnecessary.

Valid Offer

A proposal made in terms which are clear enough to be accepted and form a legally binding contract.