Accounts receivable / (Net sales / 365).
A) Inventory conversion period
B) Average collection period
C) Average payment period
D) Inventory turnover

Name: Accounts receivable / (Net sales / 365). A) Inventory conversion period B) Average collection period C) Average payment period D) Inventory turnover
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Question

Quizplus · Accepted Answer

The formula given is for average collection period which measures the average number of days it takes for a company to collect its accounts receivable.

Accounts Receivable / (Net Sales / 365)