Net Sales Divided by Average Accounts Receivable,net Is The

question 65

Multiple Choice

Net sales divided by Average accounts receivable,net is the:

• A)Days' sales uncollected.
• B)Average accounts receivable ratio.
• C)Current ratio.
• D)Profit margin.
• E)Accounts receivable turnover ratio.

---

Definitions:

Carrying Value

The net amount at which an asset or liability is reported on the balance sheet, calculated as original cost minus any depreciation, amortization, or impairment costs.

Common Stock

A type of security that represents ownership in a corporation, with holders having a claim on the company's earnings and assets.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Straight-Line Method

A method of calculating depreciation of an asset, which assumes the asset will lose an equal amount of value each year over its useful life.