What Is the Formula for Calculating the Average Collection Period

question 21

Multiple Choice

What is the formula for calculating the average collection period for accounts receivable in days?

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

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Definitions:

Compensatory Education

Educational policies or programs designed to overcome deficits in a child's educational experiences, aiming to improve skills and provide opportunities especially for disadvantaged children.

Social Programs

Government initiatives designed to provide support and assistance to the population, such as healthcare, education, and housing.

Remedial Programs

Educational programs designed to improve skills in areas where students are underperforming or lacking, often focusing on reading, writing, and mathematics.

Special Education

Tailored education programs designed to meet the unique needs of students with disabilities or exceptionalities.