The Following Company Information Is Available What Is the Company's Days Sales Outstanding? (Assume All Sales

question 24

Multiple Choice

The following company information is available: $$\begin{array} { | l | r | } \hline \text { Average accounts receivable } & \$ 500,000 \\\hline \text { Average inventories } & 130,000 \\\hline \text { Average accounts payable } & 110,000 \\\hline \text { Net sales } & 8,000,000 \\\hline \text { Cost of goods sold } & 1,200,000 \\\hline \text { Purchases } & 1,140,000 \\\hline\end{array}$$
What is the company's days sales outstanding? (Assume all sales are made on credit. Round your answer to one decimal place, X.X.)

• A) 22.8
• B) 9.2
• C) 16.0
• D) 2.4

Comprehend the order and grouping of balance sheet accounts.

Recognize the treatment of cash transactions in accounting.

Understand the basic principles of debits and credits in accounting.

Identify which accounts are increased by debits and which by credits.

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Definitions:

Perceptual Studies

The examination of how organisms interpret and understand their environments through sensory input.

Lex Talionis

A principle of retributive justice meaning "the law of retaliation", where the punishment corresponds directly to the offense, as in "an eye for an eye".

Theory of Punishment

A set of principles that aim to justify and guide the imposition of penalties on individuals who violate laws, focusing on deterrence, retribution, rehabilitation, and restoration.

Retribution

A principle of justice that prescribes punishment for an offense should be proportionate to the severity of the crime committed.