Smart and Smiley Ltd has an average collection period of 74 days.What is the accounts receivable turnover ratio for Smart and Smiley?
A)4.93
B)2.47
C)2.66
D)1.68

Name: Smart and Smiley Ltd has an average collection period of 74 days.What is the accounts receivable turnover ratio for Smart and Smiley? A)4.93 B)2.47 C)2.66 D)1.68
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio is calculated as 365 days divided by the average collection period. Therefore, 365 / 74 = 4.93.

Smart and Smiley Ltd Has an Average Collection Period of 74