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  • Exam Code: 1V0-41.20
  • Exam Name: Associate VMware Network Virtualization
  • Version: V15.35     Q & A: 208 Questions and Answers

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NEW QUESTION: 1
The average collection period for an entity measures the number of days:
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B. Beyond the end of the credit period before a typical customer payment is received.
C. For a typical check to "clear" through the banking system.
D. After a typical credit sale is made until the entity receives the payment.
Answer: D
Explanation:
The average collection period measures the number of days between the date of sale and the date of collection. It should be related to an entity's credit terms. For example, an entity that allows terms of 2/15, net 30, should have an average collection period of somewhere between 15 and 30 days.

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