Asked by
Ilyoung Jeong
on Nov 12, 2024
Verified
Frabine Company had $150,000 in sales on account last year. receivable balance was $14,000 and the ending accounts receivable balance was
$18,000. The company's accounts receivable turnover was closest to:
A) 8.33 times.
B) 4.69 times.
C) 9.38 times.
D) 10.71 times.
Accounts Receivable Turnover
A ratio that measures how effectively a company collects its receivables, calculated by dividing total net sales by the average accounts receivable.
- Appreciate the structure and breakdown of balance sheets and income statements.
- Carry out the calculation and understanding of turnover ratios, with a focus on accounts receivable turnover and inventory turnover.
Verified Answer
AD
Learning Objectives
- Appreciate the structure and breakdown of balance sheets and income statements.
- Carry out the calculation and understanding of turnover ratios, with a focus on accounts receivable turnover and inventory turnover.