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

Question

Quizplus · Accepted Answer

Days' sales in receivables is the specific ratio that measures the number of days it takes a company to collect its accounts receivable. It is calculated by dividing the accounts receivable by the average daily credit sales. The other ratios listed (current ratio, acid-test ratio, and quick ratio) do not specifically measure the number of days it takes to collect receivables.

The Number of Days It Takes to Collect the Average