The turnover of accounts receivable can be calculated by dividing 365 days by average collection period.

Name: The turnover of accounts receivable can be calculated by dividing 365 days by average collection period.
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Question

Quizplus · Accepted Answer

The formula for turnover of accounts receivable is the number of times receivables are collected in a year. This can be calculated by dividing 365 days by the average collection period in days. Therefore, the statement is true.

The Turnover of Accounts Receivable Can Be Calculated by Dividing