The Accounts Receivable Turnover Rate

question 84

Multiple Choice

The accounts receivable turnover rate:

• A)Indicates how many times the receivables were converted into cash during the year.
• B)Is computed by dividing average receivables by sales.
• C)Indicates the average number of days a business waits to make collection on a credit sale.
• D)Indicates the proportion of a company's accounts receivable that the independent auditors were unable to confirm.

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Definitions:

Intercostals

Muscles situated between the ribs that play a role in the mechanics of breathing.

Apices of Lungs

The uppermost parts of the lungs, situated near the clavicle (collarbone).

Clavicles

Long, thin bones that serve as a strut between the shoulder blade and the sternum or breastbone, commonly referred to as collarbones.

Midclavicular Line

An imaginary vertical line that runs through the midpoint of the clavicle in a person's anatomical position.