Ortny Industries Has an Accounts Receivable Turnover Ratio of 4

question 102

Multiple Choice

Ortny Industries has an accounts receivable turnover ratio of 4.3. If Ortny has an accounts receivable balance of $90,000, what is Ortny's average daily credit sales?

• A) $387,000
• B) $1,548
• C) $1,060
• D) $3,521

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Definitions:

Compound-Interest CSB

An interest calculation method, possibly referring to Canada Savings Bonds, where earned interest is added to the principal, and future interest calculations are based on the new total.

Redeemed

The act of repaying or buying back a security or loan, often before it matures.

Guaranteed Minimum

The lowest amount assured by a contract, regardless of external conditions or outcomes.

Annual Rates

Refers to the interest rate or growth rate over a one-year period, often used in financial contexts.