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.
$23,000/$5,860 = 3.9

Question

Quizplus · Accepted Answer

The calculation provided in the statement is incorrect. The accounts receivable turnover would be:
Accounts Receivable Turnover = Net Sales / Average Accounts Receivable
Accounts Receivable Turnover = $23,000 million / $5,860 million
Accounts Receivable Turnover = 3.93 (approx.)

Therefore, the correct answer is B) False.

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