Answer:
B : by dividing 365 days by the accounts receivable turnover ratio
The reason for this is that the accounts receivable turnover ratio tells us the efficiency of a company in collecting its receivables. A ratio of 10 tells us that a company collects its average receivables 10 times a year. When we divide 365 by we get 36.5 which suggests that a company takes 36.5 days to collect its average receivables.
Explanation:
