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CaHeK987 [17]
1 year ago
5

what does a receivables turnover of 7 times represent? multiple choice question. the company took an average of 7 days to collec

t on their sales. the company's average accounts receivable collection period is 7 days. the company issued and collected trade credit, at the level of its accounts receivable balance, 7 times during the year. the company collected on their sales and sold the accounts receivable for 7 times their worth.
Business
1 answer:
aniked [119]1 year ago
6 0

A turnover of 7 times represents the company issued and collected trade credit, at the level of its accounts receivable balance, 7 times during the year.

The number of times per year that a company collects its average accounts receivable is referred to as accounts receivable turnover.Accounts receivable turnover is a measure used by accountants and analysts to assess how effectively businesses collect on credit given to customers.

The higher your receivable turnover ratio, the better, because it indicates that your customers pay their invoices on time and that your company collects debts efficiently. A higher turnover ratio also indicates improved cash flow and a more solid balance sheet or income statement.

To know more about receivables turnover, click here.

brainly.com/question/16447941

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What is the dividend on an 8 percent preferred stock that currently sells for $45 and has a face value of $50 per share?
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The dividend of a stock would always depend on the face value of the share. Therefore the dividend is calculated by:

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7 0
3 years ago
The following information is from Amos Company for the year ended December 31, 2019.
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Answer:

Explanation:

The preparation of the statement of retained earnings for Amos Company is shown below:

Retained earnings at December 31, 2018 (before discovery of error) $858,000

Less: Depreciation expense two years ago -$45,600

Add: net income $209,000

Less: Cash dividends declared and paid during the year -$11,000

Retained earnings at December 31, 2019             $1,010,400

3 0
3 years ago
David Segal started a business. During the first month (October 20--), the following transactions occurred.
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Answer:

Assets = Liabilities + Owner’s Equity (Capital – Drawing + Revenues – Expenses) = $17,017

Explanation:

Note: See the attached xlsx file for the effect of each transaction on the individual accounts of the expanded accounting equation and the report of the total of each element.

In the attached xlsx file, transaction (c) is treated in such a way that the insurance for the month of October 20—is accounted for under the following:

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2 years ago
Determining Net Cash Flow from Operating Activities
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$67,150

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The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

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Net income $12,750

Adjustment made:

Add : Depreciation expense $32,600

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Add: Increase in accounts payable $19,800

Less: Decrease in interest payable -$1,200

Total of Adjustments $54,400

Net Cash flow from Operating activities                        $67,150

5 0
3 years ago
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