What relationship exists between the average collection period and accounts receivable turnover?

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Question:
What relationship exists between the average collection period and accounts receivable turnover?

1.Both ratios are expressed in number of days

2.Both ratios are expressed in number of times receivables are collected per year

3.As average collection period increases (decreases) the accounts receivable turnover decreases (increases)

4.There is a direct and proportional relationship

Posted Date:-2021-11-26 21:54:25

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