The average collection period for accounts receivable is computed by dividing 365 days by
A) net credit sales.
B) average accounts receivable.
C) ending accounts receivable.
D) accounts receivable turnover.

Question

Quizplus · Accepted Answer

The average collection period for accounts receivable is calculated by dividing 365 days by the accounts receivable turnover ratio, which measures how many times a company collects its average accounts receivable in a year.

The Average Collection Period for Accounts Receivable Is Computed by Dividing