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:

Decentration

The cognitive ability to consider multiple aspects of a situation simultaneously and understand that changes in one aspect do not necessarily affect another, crucial in Piaget's theory of child development.

Preoperationalism

A stage in child cognitive development where children from about 2 to 7 years old engage in symbolic play and struggle with logic and taking the perspective of others.

Concrete Operational

A stage in Piaget's theory of cognitive development during which children gain the abilities of logical thought about concrete events, understanding the concepts of conservation, and the ability to classify and serial order.

Preoperational

A stage in Jean Piaget’s theory of cognitive development during which children from about 2 to 7 years old develop memory and imagination, but are not yet able to perform operations (logical reasoning tasks).