What Relationship Exists Between the Average Collection Period and Accounts

question 14

Multiple Choice

What relationship exists between the average collection period and accounts receivable turnover?

• A) There is a direct and proportional relationship.
• B) Both ratios are expressed in number of times receivables are collected per year.
• C) Both ratios are expressed in number of days.
• D) As average collection period increases (decreases) the accounts receivable turnover decreases (increases).

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Definitions:

Codes

Sets of symbols or sequences used to represent information in a condensed and specific format.

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An inflammation of the lungs.

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An antibiotic used to treat a wide variety of bacterial infections by inhibiting cell wall synthesis.

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