Use 360 or 365?

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  • #183775
    Anonymous
    Inactive

    Do you use 360 or 365 when using number of days per year in the denominator? I recall in CPAexcel, it says you use 360. But, on Wiley page 242, it uses 365 instead of 360, for receivables collection period, inventory conversion period, and payroll deferral period. I have included an example below:

    Receivables collection period = Average receivables/Credit sales per day

    Receivables collection period = $3,000,000 / ($40,000,000/365 days)

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  • #516364
    san4596
    Member

    Unless they provide the # of days, I would default to 365.

    CPA EXAM: DONE!!!!
    Ethics Course: Passed
    Application Mailed: 3/16/15
    Professional Conduct Exam: 97
    Certification Date: 4/2/15!!!

    #516403
    san4596
    Member

    Unless they provide the # of days, I would default to 365.

    CPA EXAM: DONE!!!!
    Ethics Course: Passed
    Application Mailed: 3/16/15
    Professional Conduct Exam: 97
    Certification Date: 4/2/15!!!

    #516366
    Anonymous
    Inactive

    365

    #516404
    Anonymous
    Inactive

    365

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