Average daily sales × average collection period correctly speciﬁes the level of the ﬁrm's receivables
balance.

Name: Average daily sales × average collection period correctly speciﬁes the level of the ﬁrm's receivables balance.
Brand: Quizplus
Rating: 4.7 (49 reviews)

Question

Quizplus · Accepted Answer

The formula for calculating the level of a firm's receivables balance is average daily sales × average collection period. Therefore, multiplying these two figures correctly specifies the level of the firm's receivables balance.

Average Daily Sales × Average Collection Period Correctly Speciﬁes the Level