The measure of how long it takes a firm to convert a credit sale into a usable form is known as which of the following?
A) average collection period
B) inventory turnover
C) quick ratio
D) current ratio

Question

Quizplus · Accepted Answer

The average collection period measures the time it takes for a company to convert credit sales into cash, reflecting the efficiency of the company's credit policies and collection efforts.

The Measure of How Long It Takes a Firm to Convert