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The receivable turnover can be calculated by which of the following formula:
Suggested Answer: A
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26 comments · newest first
LA
Lavonne
3 months ago
Exactly! It helps assess cash flow management.
AH
Ahmed
3 months ago
I remember it as net credit sales over average accounts receivable.
JE
Jenifer
3 months ago
Yeah, that sounds right! It shows how efficiently we collect.
TH
Thersa
4 months ago
I think it's sales divided by receivables.
HO
Howard
5 months ago
Yup, average accounts receivable is key for accuracy!
MA
Malcom
5 months ago
I thought it was just net sales, not specifically credit sales.
JA
Janessa
5 months ago
Wait, are we sure that's the only way to do it?
MA
Marti
6 months ago
Totally agree, that's the standard formula!
AI
Aileen
6 months ago
It's calculated by dividing net credit sales by average accounts receivable.
LE
Leeann
6 months ago
The correct formula is net sales divided by average accounts receivable. Nailed it!
GE
Gearldine
6 months ago
The receivable turnover formula? More like the "how to stay awake during this exam" formula, am I right?
RO
Rose
6 months ago
Hmm, I'm pretty sure it's net sales divided by the sum of beginning and ending accounts receivable. Gotta love those tricky accounting formulas!
MA
Maddie
6 months ago
I think it's net sales divided by total accounts receivable. That's what I learned in my accounting class.
RO
Rochell
7 months ago
The receivable turnover formula is net sales divided by average accounts receivable. Easy peasy!
ME
Merissa
7 months ago
I’m pretty confident it’s net credit sales over average accounts receivable, but I might mix it up with inventory turnover sometimes.
BE
Benedict
7 months ago
I feel like there might be a different formula for this, but I can't recall what it is. Was it something with total sales instead of just credit sales?
LI
Lina
8 months ago
I remember practicing a similar question where we had to calculate the turnover ratio, and I think it was definitely about sales and receivables.
SO
Solange
8 months ago
I think the receivable turnover is calculated by dividing net credit sales by average accounts receivable, but I'm not completely sure.
IS
Isreal
8 months ago
I've got this! The receivable turnover is calculated by dividing net credit sales by the average accounts receivable balance. Piece of cake!
RA
Raina
8 months ago
The receivable turnover formula? I'm drawing a blank on that one. I better quickly scan my textbook to refresh my memory before answering.
OD
Odette
8 months ago
Okay, let me think this through. I believe the formula is total credit sales divided by average accounts receivable. That should give me the receivable turnover ratio.
SH
Sharen
9 months ago
Hmm, I'm a bit unsure about the exact formula for receivable turnover. I'll need to review my notes to make sure I have the right approach.
DI
Diane
9 months ago
I think the receivable turnover is calculated by dividing net credit sales by average accounts receivable. That's the formula I remember from class.
GL
Glory
2 months ago
Makes sense! It's all about efficiency in collecting receivables.
TY
Ty
3 months ago
Yes, that's the formula we learned too!
JO
Josphine
3 months ago
I agree, net credit sales divided by average accounts receivable sounds right.