The Formula for Calculating the Average Collection Period for Accounts

question 42

Multiple Choice

The formula for calculating the average collection period for accounts receivable in days is:

• A) Average receivables divided by net credit sales
• B) Net credit sales divided by average receivables
• C) 365 divided by average receivables
• D) Average receivables x 365 divided by net credit sales

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Definitions:

BAT Model

The BAT model is a term used in various contexts, including finance for "Behavioral Analysis Training," but if referring specifically to a financial model, clarification is needed as it may not apply. Without a specific context, providing an accurate definition is challenging.

Miller-Orr Model

is a financial management strategy designed to optimize cash balances by setting upper and lower limits on cash reserves.

Weekly Cash Flows

An accounting measure used to monitor the cash movement in and out of a business on a weekly basis.

BAT Model

Behavioural Analysis Technology Model, used in various fields to anticipate or analyze human behavior; if not applicable, NO.