The collection period for accounts receivable is calculated by dividing 365 days by the receivables turnover.

Name: The collection period for accounts receivable is calculated by dividing 365 days by the receivables turnover.
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Quizplus · Accepted Answer

The collection period for accounts receivable, also known as the average collection period, is indeed calculated by dividing 365 days by the receivables turnover ratio. This calculation gives the average number of days it takes a company to collect its accounts receivable.

The Collection Period for Accounts Receivable Is Calculated by Dividing