Showdown Co.had net sales of $680,000 and average accounts receivable of $64,000.Its accounts receivable turnover was 10.6.

Name: Showdown Co.had net sales of $680,000 and average accounts receivable of $64,000.Its accounts receivable turnover was 10.6.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The accounts receivable turnover can be calculated as Net Sales / Average Accounts Receivable. In this case, 680,000 / 64,000 = 10.6 turnovers. Therefore, the statement is true.