The following information is available for Charles Company: The accounts receivable turnover for 2014 is
A) 1.6 times.
B) 5.4 times.
C) 5.1 times.
D) 3.9 times.

Question

The following information is available for Charles Company:  The accounts receivable turnover for 2014 is
A) 1.6 times. 
B) 5.4 times. 
C) 5.1 times. 
D) 3.9 times.

Quizplus · Accepted Answer

The accounts receivable turnover for 2014 can be calculated by dividing net credit sales by average accounts receivable for the year. Without additional information, we cannot calculate net credit sales or average accounts receivable, so we must rely on the given answer choices. Based on the options provided, the closest answer is C, with an accounts receivable turnover of 5.1 times.

The Following Information Is Available for Charles Company: the Accounts