The Number of Days' Sales Uncollected

question 313

Multiple Choice

The number of days' sales uncollected

• A)Measures how much time is likely to pass before a company receives cash receipts from credit sales equal to the current amount of accounts receivable
• B)Is used to compare a company to other companies in the same industry
• C)Is used to compare between current and prior periods
• D)Is used to compare a company to other companies in the same industry and is used to compare between current and prior periods
• E)All of these

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, typically the currency in which it principally generates and expends cash.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, as a portion of the corporation’s earnings.

Foreign Subsidiary

A company that is partially or wholly owned but is located in a different country than the parent company, subject to the laws and regulations of the country in which it operates.

Currency Exchange Rates

The value of one currency for the purpose of conversion to another currency.