A Company Must Have Less Than 30 Days' Sales Uncollected

question 39

True/False

A company must have less than 30 days' sales uncollected to be adequately liquid.

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Definitions:

Legal Sufficiency

The condition of an agreement or document meeting all required legal standards and formalities to be recognized as valid and enforceable in a court of law.

Adequacy

The quality or state of being sufficient for a particular purpose or in fulfilling requirements.

Legal Adequacy

The sufficiency of consideration in a contract that makes it legally binding and enforceable.

Bargained-for Exchange

A fundamental principle in contract law where both parties voluntarily agree to provide something of value to the other, forming a valid contract.