Smart and Smiley Incorporated 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 Incorporated 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: 4.9 (43 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 Incorporated Has an Average Collection Period of 74