Days' Sales Outstanding Can Be Computed in Two Logical Steps

question 48

Multiple Choice

Days' sales outstanding can be computed in two logical steps.In the second step:

• A)the collection period must be determined.
• B)the average daily sales are computed.
• C)the average daily sales are divided by the average net receivables.
• D)the average net receivables are divided by the average daily sales.

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Definitions:

Hippocampus

A critical brain structure located in the medial temporal lobe, involved in the formation and retrieval of memories.

Anterograde Amnesia

A loss of the ability to create new memories after the event that caused amnesia, leading to a partial or complete inability to recall the recent past, while long-term memories from before the event remain intact.

Iconic Memory

A component of the visual memory system which includes a brief, transient visual representation of the scene one has just perceived.

Acetylcholine

A neurotransmitter involved in many functions including muscle movement, heart rate, memory, and learning.