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:

Latte

A coffee drink made with espresso and steamed milk, often with a small amount of foam on top.

Excise Tax

A type of tax charged on specific goods, such as alcohol and tobacco, often used to discourage their use and generate revenue.

Tax Burden

The measurement of taxes paid by an individual or business, often expressed as a percentage of income or revenue.

Consumers

Consumers are individuals or entities that purchase goods or services for personal use and not for manufacture or resale.