A company with an Accounts Receivable turnover of 11.78 would be collecting its receivables about:

Question

Quizplus · Accepted Answer

An Accounts Receivable turnover of 11.78 means that on average, the company is collecting its receivables 11.78 times a year. To determine the time frame, we divide 365 (days in a year) by 11.78, which results in approximately 31 days. This means that the company is collecting its receivables once a month. Therefore, the best choice is B.

A Company with an Accounts Receivable Turnover of 11