Use the following information to answer the next ten questions:
Excerpts from TPX Company's December 31,2015 and 2014,financial statements are presented below:

-TPX Company's 2015 average collection period is:
A)69 days.
B)65 days.
C)73 days.
D)1,825 days.

Question

Use the following information to answer the next ten questions:
Excerpts from TPX Company's December 31,2015 and 2014,financial statements are presented below:
 
-TPX Company's 2015 average collection period is:
A)69 days. 
B)65 days. 
C)73 days. 
D)1,825 days.

Quizplus · Accepted Answer

The average collection period is calculated by dividing the number of days in a year (365) by the accounts receivable turnover ratio. Given the options, 69 days is the most reasonable average collection period for a company.

Use the Following Information to Answer the Next Ten Questions