The Days' Sales Uncollected Ratio Is Calculated By

question 96

Multiple Choice

The days' sales uncollected ratio is calculated by:

• A)Dividing accounts receivable by net sales and multiplying the result by 365.
• B)Multiplying net sales by accounts receivable and dividing the result by 365.
• C)Dividing net sales by accounts receivable.
• D)Dividing accounts receivable by net sales.
• E)Dividing net sales by accounts receivable and multiplying the result by 365.

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Definitions:

Household Expenditure

The total spending by households in an economy, including consumption, rent, utilities, and other expenses.

Durable Goods

Goods not immediately consumed that can be used multiple times over a period, such as appliances, cars, and furniture.

Investment

The allocation of resources, usually money, into something expected to generate income or profit in the future.

Durable Goods

Items with a long life span, such as cars and home appliances, which are used over time rather than consumed quickly.