The Average Number of Days to Collect Accounts Receivable Is

question 46

Multiple Choice

The average number of days to collect accounts receivable is computed by dividing:

• A)Accounts Receivable by net income.
• B)Accounts Receivable by 365.
• C)365 by the accounts receivable turnover ratio.
• D)Sales divided by Accounts Receivable.

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Definitions:

Physical Labor

Physical labor refers to work that requires physical effort or manual tasks as opposed to mental work.

Industrial Revolution

A period of major industrialization from the late 18th to early 19th centuries that transformed primarily agrarian, rural societies into industrialized, urban ones.

Rural Activities

Economic, social, and recreational activities that take place in countryside areas, often related to agriculture, forestry, or small-scale manufacturing.

Not-for-Profit Organizations

Organizations that function not to generate profit but primarily concentrate on objectives related to social, educational, or charitable activities.