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

question 141

Multiple Choice

Smay Corporation has provided the following data: $\begin{array}{ll}&\text { This Year } & \text { Last Year } \\\text {Accounts receivable. }&\$ 107,000 & \$ 108,000 \\\text {Inventory. }&\$ 179,000 & \$ 187,000 \\\text {Sales on account. }&\$ 654,000 & \\\text {Cost of goods sold }&\$ 461,000 &\end{array}$ The accounts receivable turnover for this year is closest to:

• A)1.01
• B)0.99
• C)6.08
• D)6.11

---

Definitions:

Principles-based

A system of accounting that is based on broad principles and guidelines, allowing for professional judgment and flexibility in financial reporting.

Rules-based

A regulatory approach that relies on detailed and specific standards for compliance, often contrasted with principles-based systems.

Bargain Purchase Option

A lease provision that allows the lessee to purchase the leased property at a price significantly lower than its expected fair market value at the end of the lease term.

Executory Costs

Operating expenses associated with a lease, including insurance, maintenance, and taxes, usually assumed by the lessee.