The Number of Days It Takes to Collect the Average

question 121

Multiple Choice

The number of days it takes to collect the average amount of receivables is called:

• A) the quick ratio
• B) the acid-test ratio
• C) the current ratio
• D) days' sales in receivables

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Definitions:

Office Supplies

Items used in an office for daily operations, such as paper, pens, and staplers, typically classified as short-term assets.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the correct period.

January

The first month of the year in the Gregorian calendar, often associated with new beginnings and resolutions.

Biweekly Salaries

Salary payments made to employees every two weeks, often resulting in 26 pay periods in a year.