Asked by
Tasheika Rutherford
on Oct 15, 2024Verified
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.
Net Sales
Net sales are the total revenue from goods or services sold by a company, minus returns, allowances for damaged or missing goods, and discounts.
Average Accounts Receivable
The average amount of money owed to a company by its customers for goods or services provided on credit, over a specific period.
- Measure and scrutinize financial ratios like the acid-test, current ratio, and accounts receivable turnover to assess financial vitality.
Verified Answer
BL
Learning Objectives
- Measure and scrutinize financial ratios like the acid-test, current ratio, and accounts receivable turnover to assess financial vitality.