Which of the following measures the average number of days it takes to collect a receivable?

The measure that reflects the average number of days it takes for a company to collect its receivables is known as Days Sales Outstanding (DSO). DSO is a key performance indicator in assessing how efficiently a company manages its accounts receivable. It indicates how long it typically takes for the business to convert credit sales into cash.

To calculate DSO, you take the accounts receivable balance, divide it by the total credit sales over a specific period, and then multiply that result by the number of days in the period. This provides insight into the effectiveness of the company's credit policies and collection efforts. A lower DSO indicates that the company is collecting receivables more quickly, which can enhance cash flow.

In contrast, other metrics listed, like Days Payable Outstanding, Days Inventory Outstanding, and Accounts Payable Turnover, measure different aspects of a company's financial operations, such as how quickly it pays its suppliers or how effectively it manages its inventory. These metrics do not directly relate to the collection of receivables. Thus, the focus on receivables collection distinctly identifies Days Sales Outstanding as the correct answer for measuring the average collection period.