If the average collection period is 45 days, what is the receivables turnover?
A) 12.0 times
B) 8.1 times
C) 18.0 times
D) None of these

Name: If the average collection period is 45 days, what is the receivables turnover? A) 12.0 times B) 8.1 times C) 18.0 times D) None of these
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Question

Quizplus · Accepted Answer

The receivables turnover ratio is calculated as 365 days divided by the average collection period. Therefore, 365 / 45 = 8.1 times.

If the Average Collection Period Is 45 Days, What Is