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:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Hammers

Tools consisting of a weighted "head" fixed to a long handle, used for driving nails into, or pulling them out of, a surface.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first sold during an accounting period; LIFO stands for Last-In, First-Out.

Ending Inventory

The value of goods available for sale at the end of an accounting period, after accounting for sales and additions during the period.