If the Average Collection Period Is 52 Days, What Is

question 28

Multiple Choice

If the average collection period is 52 days, what is the accounts receivable turnover?

• A) 7.0 times
• B) 14.2 times
• C) 14.0 times
• D) 5.2 times

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Definitions:

Free Lunch

An expression indicating that obtaining goods or services without cost or effort is impossible in economic terms, as there's always a trade-off.

Economic Theory

An organized set of concepts and principles that aims to explain how economies function and to provide a framework for economic policy decisions.

Anomaly

An anomaly refers to something that deviates from what is standard, normal, or expected, often presenting a challenge to conventional understanding.

Principle

A basic principle or statement that acts as the cornerstone for a belief system or behavior, or as the starting point for a sequence of logical arguments.