If the Average Collection Period Is 60 Days What Is

question 96

Multiple Choice

If the average collection period is 60 days what is the accounts receivable turnover?

• A) 6.0 times
• B) 6.1 times
• C) 12.2 times
• D) None of these

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Definitions:

Depreciation

The reduction in the value of an asset over time due to wear and tear or obsolescence.

Dollar

The basic monetary unit used in the United States and other countries, symbolized by $.

Exports

Goods or services produced in one country and sold to buyers in another country.

Financial Account

Refers to a component of a country's balance of payments that records investments and financial transactions, including investments in foreign securities and direct investments.