If the Turnover Period for Accounts Receivable Is 8

question 36

Multiple Choice

If the turnover period for accounts receivable is 8.1 times per annum, what is the average number of days it takes to collect cash from accounts receivable?

• A)81 days.
• B)45 days.
• C)295 days.
• D)60 days.

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Definitions:

Fiduciary Duty

A legal obligation of one party to act solely in the best interest of another party, such as a trustee for a beneficiary.

Partnership's Profits

Partnership's profits refer to the share of income generated by a business partnership that is distributed among its partners according to the terms of their agreement.

Personal Income Tax

A tax levied on the income of individuals, which varies according to the income level and financial situation of the taxpayer.

Withdrawing

The act of removing or pulling back from a commitment, activity, bank account, or legal proceeding.