The Average Collection Period Is Computed by Dividing

question 55

Multiple Choice

The average collection period is computed by dividing

• A) net credit sales by average gross accounts receivable.
• B) net credit sales by ending gross accounts receivable.
• C) the accounts receivable turnover ratio by 365 days.
• D) 365 days by the accounts receivable turnover ratio.

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Definitions:

Reflective Strategy

A cognitive approach involving thoughtful consideration and analysis of one's actions, feelings, and the effects they produce.

Cognitive Process

Refers to the mental operations involved in acquiring, processing, and storing knowledge.

Biased Attitudes

Prejudiced opinions or inclinations that are often unreasoned and favor one side or outcome over others without fair justification.

Experiential Process

Learning through direct experience or doing, characterized by exploration and active participation.