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:

Traditional View

A perspective that is based on long-established beliefs or practices, often contrasted with more modern or progressive approaches.

Yard Sales

Informal sales events typically held at someone's home or property where used goods are sold to the public.

Opposition

A position or movement against something, often referring to a disapproval or resistance against proposals, policies, or authorities.

Relationships

Connections or associations between people, groups, or objects, characterized by a certain level of involvement or interaction.