If the turnover period for debtors is 8.1 times per annum, the average number of days it takes to collect cash from debtors is:
A) 45 days.
B) 81 days.
C) 295 days.
D) 60 days.

Name: If the turnover period for debtors is 8.1 times per annum, the average number of days it takes to collect cash from debtors is: A) 45 days. B) 81 days. C) 295 days. D) 60 days.
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Question

Quizplus · Accepted Answer

The average number of days to collect cash from debtors is calculated by dividing 365 days by the turnover period. So, 365 / 8.1 ≈ 45 days.

If the Turnover Period for Debtors Is 8