Business Ratios Question:
Define average collection period?
Answer:
The average collection period is the average number of days between:
1) the date that a credit sale is made
2) the date that the money is received from the customer.
The average collection period is also referred to as the days' sales in accounts receivable.
1) the date that a credit sale is made
2) the date that the money is received from the customer.
The average collection period is also referred to as the days' sales in accounts receivable.
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