How Is Days to Collect Accounts Receivable Determined

question 45

Multiple Choice

How is days to collect accounts receivable determined?

• A) 365 days divided by accounts receivable turnover.
• B) Net sales divided by 365.
• C) Net sales divided by average net trade receivables.
• D) Accounts receivable turnover divided by 365 days.

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Definitions:

Economic Well-Being

refers to the overall financial health of an individual, community, or nation, measured by factors such as income, employment, and access to resources.

Child Support Payments

Financial contributions one parent makes to another for the expenses incurred for their children following a separation or divorce.

Emotional Health

Emotional health is a state of well-being where individuals are aware of and able to manage their emotions, cope with stress in a healthy way, and maintain positive relationships.

Physical Well-Being

A state of health, fitness, and overall physical health that enables an individual to perform daily tasks effectively and without discomfort.