Assuming a 365-day year,Gore Industries calculated an average of 53 days to collect its accounts receivable in 2018.During 2018,Gore's accounts receivable turnover rate:
A)Was approximately 6.89.
B)Was equal to 53 times its average accounts receivable.
C)Was approximately 0.15.
D)Can't be determined from this information alone.

Question

Quizplus · Accepted Answer

The accounts receivable turnover rate can be calculated as 365/average collection period. Therefore, Gore's accounts receivable turnover rate in 2018 would be 365/53 = approximately 6.89. Option A is the closest choice.

Assuming a 365-Day Year,Gore Industries Calculated an Average of 53