Accounts Receivable Turnover Is Computed by Dividing

question 34

Multiple Choice

Accounts receivable turnover is computed by dividing:

• A)365 divided by Accounts Receivable.
• B)Accounts receivable divided by Sales.
• C)Cost of goods sold divided by Inventory.
• D)Sales divided by Accounts Receivable.

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Definitions:

Three-Year Loan

A loan that is scheduled to be repaid in full, including interest and principal, over a period of three years.

Print Money

Refers to the process by which a country's central bank creates money, often leading to inflation if done excessively.

Federal Government

The national government of a federation, which holds the authority to govern on matters that affect the entire country, such as defense, fiscal policy, and interstate commerce.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government considered a low-risk investment.