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:

Rice

A staple grain consumed worldwide, known for its versatility in numerous culinary traditions and its importance in feeding a significant portion of the global population.

Bushels

A unit of volume that is used to measure quantities of grain, fruit, and other dry commodities, varying in exact measure by product and country.

Microeconomist

An economist who specializes in microeconomics, the study of the behavior of individuals and firms in making decisions on the allocation of limited resources.

Inflation Rate

The speed at which the generic pricing for goods and services elevates, undercutting the force of buying potential.