The number of days' sales uncollected is determined by dividing
A) the number of days in a year by the receivable turnover.
B) the number of days in a year by average accounts receivable.
C) net income by average accounts receivable.
D) sales by average accounts receivable.

Question

Quizplus · Accepted Answer

The number of days' sales uncollected is calculated by dividing the number of days in a year by the receivable turnover ratio. This measures how many days on average it takes to collect receivables.

The Number of Days' Sales Uncollected Is Determined by Dividing