The Days' Sales Uncollected Ratio Is Used to

question 291

Multiple Choice

The days' sales uncollected ratio is used to

• A)Measure how many days of sales remain until the end of the year
• B)Determine the number of days that have passed without collecting on accounts receivable
• C)Identify the likelihood of collecting sales on account
• D)Measure the amount of layaway sales for a period
• E)Estimate how much time is likely to pass before cash receipts from credit sales equal the amount of the existing accounts receivable

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Definitions:

Mass Affluent

Individuals with a significant amount of disposable income, though not wealthy by traditional standards, making them a target for certain luxury goods and financial services.

80/20 Rule

A theory that suggests that 20 percent of heavy users account for 80 percent of the total demand.

Heavy Users

Consumers who use or purchase a product or service much more frequently than average users.

VALS Framework

A psychographic segmentation tool used to categorize consumers into eight distinct types based on their lifestyles, attitudes, and values.