dividing accounts receivable, net by net sales and multiplying the result by 365 is the: multiple choice…

dividing accounts receivable, net by net sales and multiplying the result by 365 is the: multiple choice profit margin. days sales uncollected. accounts receivable turnover ratio. average accounts receivable ratio. current ratio.

dividing accounts receivable, net by net sales and multiplying the result by 365 is the: multiple choice profit margin. days sales uncollected. accounts receivable turnover ratio. average accounts receivable ratio. current ratio.

Answer

Brief Explanations:

The formula for days' sales uncollected is calculated by dividing net accounts - receivable by net sales and then multiplying by 365. It measures the average number of days it takes to collect receivables. Profit - margin is net income divided by net sales. Accounts - receivable turnover ratio is net sales divided by average accounts receivable. There is no such standard ratio as average accounts - receivable ratio and current ratio is current assets divided by current liabilities.

Answer:

B. Days' sales uncollected