A Company had net sales of $23,000 million, and its average account receivables were $5,860 million. Its accounts receivable turnover is 0.92.

Name: A Company had net sales of $23,000 million, and its average account receivables were $5,860 million. Its accounts receivable turnover is 0.92.
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Question

Quizplus · Accepted Answer

The accounts receivable turnover is calculated by dividing net sales by average accounts receivable. In this case, it would be $23,000 million / $5,860 million = 3.92, not 0.92.

A Company Had Net Sales of $23,000 Million, and Its