A "normal" value for days of receivables outstanding might be?

Question

Quizplus · Accepted Answer

A "normal" value for days of receivables outstanding is generally around 30 to 45 days, so option C is the best choice. Option A is incorrect as it suggests that the company has no receivables at all, and Option D is incorrect as it suggests that the company is taking extremely long to collect its receivables. Option B is a possibility, but without any further information it is difficult to determine if 10 days is an appropriate or "normal" value for this company.

A "Normal" Value for Days of Receivables Outstanding Might Be