The Number of Days, on Average, That a Firm Extends

question 34

Multiple Choice

The number of days, on average, that a firm extends credit to its customers is called

• A) the cash conversion period
• B) days in inventory.
• C) days sales outstanding.
• D) the cash flow cycle.

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, aiming to standardize and provide a legal framework for businesses and individuals engaging in commerce.

Previously Undisclosed Principal

A principal whose identity was not revealed by the agent at the time of entering into a contract with a third party.

Third Party

An entity that is not directly involved in a transaction or contract but may be affected by it or may have interests that are affected.

Constructive Notice

Notice of agency termination that is usually given by publishing an announcement in a newspaper.