The Average Collection Period Is Computed by Dividing

question 172

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 by 365 days.
• D)365 days by the accounts receivable turnover.

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Definitions:

Federal Employee Polygraph Protection Act

A United States federal law enacted in 1988 that prohibits most private employers from using lie detector tests, either for pre-employment screening or during the course of employment.

Lie Detector Tests

A scientific method attempted to determine if a person is telling the truth or lying by measuring physiological responses to questions, also known as polygraph tests.

Adverse Employment Decisions

These are decisions made by employers that negatively affect an employee's terms, conditions, or privileges of employment, such as demotions, terminations, or reductions in pay.

Workers' Compensation Acts

Laws that provide financial compensation and medical care for workers who are injured or disabled in the course of their employment.