Use the information above to answer the following question.Which of the following is closest to the company's accounts receivable turnover ratio for the current year?
A)10.62
B)4.0
C)4.3
D)6.31

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio is calculated by dividing net credit sales by average accounts receivable. In this case, net credit sales are $44,500 and average accounts receivable are $4,200. Therefore, the accounts receivable turnover ratio is 44,500 / 4,200 = 10.62.

Use the Information Above to Answer the Following Question