Theoretically, in computing the accounts receivable turnover, the numerator should include
A)net sales.
B)net credit sales.
C)sales.
D)credit sales.

Question

Quizplus · Accepted Answer

Net credit sales are the total sales made on credit during a period. Accounts receivable turnover measures how efficiently a company is collecting its accounts receivable, and the numerator should include only credit sales.

Theoretically, in Computing the Accounts Receivable Turnover, the Numerator Should