Average Accounts Receivable Balance Is a Function of Both the Volume

question 2

True/False

average accounts receivable balance is a function of both the volume of credit sales and the days sales outstanding.

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Definitions:

Monthly Basis

A timeframe or schedule that involves events or payments occurring once every month.

Prepaid Expense

Expenses paid in advance for goods or services which will be received in the future.

Unearned Revenue

Money received by an entity for a service or product yet to be delivered or performed.

Accrued Expense

Expenses that have been incurred but not yet paid or recorded in the financial statements.