In Computing Interest, It Is Customary to Consider 360 Days

question 44

True/False

In computing interest, it is customary to consider 360 days as a year.

---

Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time; used in capital budgeting to analyze the profitability of a projected investment or project.

Foreign Currency

Foreign Currency denotes any currency other than the home currency of a country, used in international trade and investment.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services sold on credit.