The Number of Days It Takes to Collect the Average

question 104

Multiple Choice

The number of days it takes to collect the average amount of receivables is called:

• A) the current ratio
• B) the acid-test ratio
• C) days' sales in receivables
• D) the quick ratio

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Definitions:

Underutilization

The situation where resources, such as personnel, equipment, or capacity, are not being used to their full potential.

Departmentalization

Departmentalization is an organizational strategy of dividing a company or institution into specialized sectors or departments, each focused on a distinct function or area of operation.

Divisional Structure

An organizational framework where operations are grouped based on distinct products, services, or geographic markets.

Divisionalized Structures

An organizational framework where operations are divided into semiautonomous units or divisions based on product, service, market, or geography.