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14 October, 10:25

The numerator in the number of days' sales in receivables calculation is: a. accounts receivable ending balance. b. accounts receivable beginning balance. c. average daily sales. d. None of these choices are correct.

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  1. 14 October, 10:58
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    Answer: Option A

    Explanation: Usually while calculating the number of days of receivables the average of the receivables is taken into consideration. But in case, the average could not be computed, ending balance of receivables is used for the purpose of calculation.

    The formula shows how much time will it take to convert receivables into received cash.
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