Smart Paper has an accounts receivable turnover ratio of 3.4.What is Smart Paper's average collection period?
A)107 days
B)102 days
C)73 days
D)55 days

Name: Smart Paper has an accounts receivable turnover ratio of 3.4.What is Smart Paper's average collection period? A)107 days B)102 days C)73 days D)55 days
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Question

Quizplus · Accepted Answer

The average collection period is calculated as 365 divided by the accounts receivable turnover ratio. For Smart Paper, 365 / 3.4 = 107 days.

Smart Paper Has an Accounts Receivable Turnover Ratio of 3