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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

#SPJ1

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An example of a loan that tends to have a lower interest rate is a(n) __________ loan.
Setler79 [48]
The answer is : A. Home loan

Home loan only have about 4 -5 % interest rate. Compared to other options :

- Credit Card Loan : about 15 %  of interest rate
- Paycheck Loan : also about 15 % of interest rate
- Unsecured Loan : usually above 20 % interest rates


6 0
3 years ago
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Would the outcome have been different if the roles of board chairman and CEO in BP had been combined, as in many large American
hram777 [196]

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In many companies, the chief executive officer (CEO), who holds the top management position in the company, also serves as chairman of the board. This is often the case with companies that have grown rapidly and still retain the initial founder in those roles.

8 0
3 years ago
MB has been using proper workflow for her sales process by creating invoices, receiving payments, and recording deposits using t
Semenov [28]

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MB been an accountant,  she must follows workflow process to ensure efficiency of operation.

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3 0
2 years ago
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Time Remaining 1 hour 48 minutes 56 seconds01:48:56 Item 5Item 5 Time Remaining 1 hour 48 minutes 56 seconds01:48:56 Accounts pa
scoray [572]

Answer:

Amounts owed to suppliers for products and/or services purchased on credit.

Explanation:

Accounts payable are basically short term debts that a company has with its suppliers. E.g. a retailer purchases goods from a wholesaler on terms n/30. In this case, the accounts payable would be the amount of money owed to the retailer. There is no specific time frame for an accounts payable, since it varies depending on the credit that the supplier gives. E.g. sometimes a supplier will sell on a 45 day credit period, or even 60 day period.

6 0
3 years ago
Lemony Company made sales of $ 32 comma 200 million during 2018. Cost of goods sold for the year totaled $ 12 comma 880 million.
Aleksandr [31]

Answer:

Gross profit is 60%

Inventory turnover is 4.6 times

Explanation:

The formula to compute the gross profit percentage is shown below:

= (Gross profit ÷ sales) × 100

where,

Gross profit = Sales - the cost of good sold

                   = $32,200 million ÷ $12,880 million

                   = $19,320 million

And, the sales is $32,200 million

Now put these values to the above formula  

So, the percentage would equal to

= ($19,320 million) ÷ ($32,200 million) × 100

= 60%

The formula to compute the inventory turnover is shown below:

= (Cost of goods sold) ÷ average inventory

where,

Average inventory = (Beginning inventory + ending inventory) ÷ 2

                               = ($1,200 million + $1,600 million ) ÷ 2

                               = $900 million

And, the cost of good sold is $12,880 million

Now put these values to the above formula  

So, the turnover would equal to

= $12,880 million ÷ $2,800 million

= 4.6 times

7 0
3 years ago
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