A Company with Net Sales of $850,000, a Beginning Balance

question 32

Multiple Choice

A company with net sales of $850,000, a beginning balance of net receivables of $230,000, and an ending balance of net receivables of $190,000 has a days' sales in receivables of:

• A) 99 days
• B) 90 days
• C) 92 days
• D) 82 days

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Definitions:

General Fund

The general fund is the primary operating fund of a government, supporting general activities and services such as public safety, parks, and general administration.

Agency Fund

A fiduciary account used by governmental entities to manage funds collected on behalf of others, such as taxes or grants.

Enterprise Fund

A fund used by a government to account for operations financed by user charges for services provided by the government.

Internal Service Fund

A fund used within governmental accounting to manage the costs and financing of services provided by one department to other departments on a cost-reimbursement basis.