📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      From the following details, calculate the accounts

      receivable turnover ratio:  Sales 400,000 Cost of the Goods sold 100,000  Account Receivable (at the beginning of the year) Rs.60,000 Account Receivable (at the end of the year) Rs.100,000
      A 4 Correct Answer Incorrect Answer
      B 5 Correct Answer Incorrect Answer
      C 6.67 Correct Answer Incorrect Answer
      D 2 Correct Answer Incorrect Answer
      E Cannot be determined Correct Answer Incorrect Answer

      Solution

      Accounts receivable turnover ratio = Net Sales/ Average Account Receivables  Average Receivables = (60,000+100,000)/2=80,000 Accounts receivable turnover ratio = 400,000/80,000 = 5

      Practice Next
      More Finance Questions
      ask-question