ACC 231: Formulas Question and
answers correctly solved 2025/2026
Receivables Turnover Ratio - correct answer ✔Net credit sales / Avg. Accounts Receivable
Average Collection Period - correct answer ✔365 days / Receivables Turnover Ratio
Inventory Turnover Ratio - correct answer ✔Cost of Goods Sold / Average Inventory
Average Days in Inventory - correct answer ✔365 days / Inventory Turnover Ratio
Current Ratio - correct answer ✔Current Assets / Current Liabilities
Times Interest Earned Ratio - correct answer ✔Net Income+Interest Expense+Tax Expense / Interest
Expense
Gross Profit Ratio - correct answer ✔Gross Profit / Net Sales
Return On Assets - correct answer ✔Net Income / Avg. Total Assets
Profit Margin - correct answer ✔Net Income / Net Sales
Asset Turnover - correct answer ✔Net Sales / Avg. Total Assets
Return on Equity - correct answer ✔Net Income / Avg. Stockholder's Equity
answers correctly solved 2025/2026
Receivables Turnover Ratio - correct answer ✔Net credit sales / Avg. Accounts Receivable
Average Collection Period - correct answer ✔365 days / Receivables Turnover Ratio
Inventory Turnover Ratio - correct answer ✔Cost of Goods Sold / Average Inventory
Average Days in Inventory - correct answer ✔365 days / Inventory Turnover Ratio
Current Ratio - correct answer ✔Current Assets / Current Liabilities
Times Interest Earned Ratio - correct answer ✔Net Income+Interest Expense+Tax Expense / Interest
Expense
Gross Profit Ratio - correct answer ✔Gross Profit / Net Sales
Return On Assets - correct answer ✔Net Income / Avg. Total Assets
Profit Margin - correct answer ✔Net Income / Net Sales
Asset Turnover - correct answer ✔Net Sales / Avg. Total Assets
Return on Equity - correct answer ✔Net Income / Avg. Stockholder's Equity
