The Average Collection Period for Receivables Is Calculated by Dividing

question 91

Multiple Choice

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

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

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Definitions:

Economic Landscape

The overall condition and characteristics of the economy at a certain time, including factors like GDP growth, unemployment rates, and inflation.

Government Policy

Decisions, plans, and actions that are undertaken by a government to achieve specific goals within a society.

Computerized Inventory

The use of computer systems and software to track and manage inventory levels, orders, sales, and deliveries.

Preset Standards

Preset standards are predetermined criteria or benchmarks used to measure quality, productivity, or other performance levels in various processes.