14 - Which of the following is the formula to compute accounts receivable turnover? a) O The formula is net sales / average net accounts receivable. b) O The formula is cost of goods sold / average inventory c) The formula is net credit sales / average inventory.
14 - Which of the following is the formula to compute accounts receivable turnover? a) O The formula is net sales / average net accounts receivable. b) O The formula is cost of goods sold / average inventory c) The formula is net credit sales / average inventory.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 5MC
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![14 - Which of the following is the formula to compute accounts receivable turnover?
a)
The formula is net sales / average net accounts receivable.
b) O
The formula is cost of goods sold / average inventory
The formula is net credit sales / average inventory.
d) O
The formula is average net accounts receivable / one day's sales.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd30f3735-2ebb-4f17-950f-f7f9fbca853a%2Fcbe54384-f231-479b-a486-1e0cbf2e02f9%2Fweamw35_processed.png&w=3840&q=75)
Transcribed Image Text:14 - Which of the following is the formula to compute accounts receivable turnover?
a)
The formula is net sales / average net accounts receivable.
b) O
The formula is cost of goods sold / average inventory
The formula is net credit sales / average inventory.
d) O
The formula is average net accounts receivable / one day's sales.
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