The Formula to Calculate Receivables (Debtors) Turnover in Times Per

question 58

Multiple Choice

The formula to calculate receivables (debtors) turnover in times per annum is:

• A) 365 divided by net sales
• B) Net sales revenue divided by total assets
• C) Net sales revenue divided by average receivables balance
• D) Average receivables balance divided by net sales revenue

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Definitions:

Cost

The value of everything that is consumed to produce a good or service, including materials, labor, and other expenses.

Competitive Firm

A business that operates in a market where it must compete with other firms for the same customers or resources.

Profit Maximizing

A strategy or process aimed at achieving the highest possible profit from business operations.

Technology Improvement

Enhancements or advancements in technology that lead to more efficient processes or better quality outcomes.