10,000
Accounts Receivable
10 . The receivables turnover ratio
a . Is computed by dividing net credit sales for the accounting period by the cash realizable value of accounts receivable on the last day of the accounting period .
b . Can be used to compute the average collection period .
c . Is a method of evaluating the solvency of net accounts receivable .
d . Is only important to internal users of accounting information .
11 . A measure of a company ’ s solvency is the
a . acid-test ratio .
b . current ratio .