The average collection period is also:

Question

Quizplus · Accepted Answer

The average collection period refers to the average number of days it takes for a company to collect payment on its accounts receivable. It is also commonly known as days sales outstanding (DSO). Therefore, option B is the correct answer. Option A is incorrect because accounts receivable turnover measures how quickly a company collects payment on its accounts receivable in a year, while the average collection period measures it in days. Option C refers to a report that shows the age of each unpaid invoice, which is used to calculate the average collection period. Option D is irrelevant to the calculation of average collection period.

The Average Collection Period Is Also