Net Sales Divided by Average Accounts Receivable, Net Is The

question 96

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.

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Definitions:

Demand

The consumer's desire and willingness to pay a price for a specific good or service.

Cash Sales

Transactions in which goods or services are paid for and received at the time of the transaction with cash or other immediate payment methods.

Cash Cycle

The period between the purchase of inventory and the collection of receivables from customers, indicating liquidity.

Discount

A reduction from the usual cost of something.