The number of days it takes to collect the average amount of receivables is called the:

Question

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The average number of days it takes to collect receivables is referred to as the days' sales in receivables. This metric is determined by dividing the receivables balance by the average daily sales figure. It provides a clear understanding of how quickly a company can collect its receivables and convert them into cash. The other options (receivables turnover ratio, current ratio, and collection ratio) do not specifically refer to the number of days it takes to collect receivables.

The Number of Days It Takes to Collect the Average