Billing's Pit Corporation has an accounts receivable turnover ratio of 3.4.What is Billing's Pit Corporation's average collection period? You may use a 360-day year.
A)106 days
B)102 days
C)73 days
D)55 days

Question

Quizplus · Accepted Answer

The average collection period is calculated as 360 days divided by the accounts receivable turnover ratio. So, 360 / 3.4 = 105.88, which rounds to 106 days.

Billing's Pit Corporation Has an Accounts Receivable Turnover Ratio of 3.4.What