The Average Collection Period for Receivables Is Computed by Dividing

question 71

Multiple Choice

The average collection period for receivables is computed by dividing 365 days by

• A)net credit sales.
• B)average accounts receivable.
• C)ending accounts receivable.
• D)accounts receivable turnover.

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Definitions:

Sedimentary Rock

Rock formed by the accumulation or deposition of mineral and organic particles at the Earth's surface, followed by compaction and cementation.

Iron Formation

A rock composed of millimeter- to centimeter-thick layers of iron-bearing minerals, especially iron oxide, commonly with quartz.

Gypsum Formation

A geological process leading to the creation of gypsum, a mineral used in building materials and fertilizers, through the evaporation of mineral-rich water.

Calcium Carbonate

A chemical compound (CaCO3) found in rocks as the minerals calcite and aragonite and is the main component of pearls, shells of marine organisms, snails, and eggs.