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

question 43

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 accounts receivable of:

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

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Definitions:

Pledged Property

Property that a borrower provides to a lender as security for a loan, ensuring that the lender has a claim to the property if the loan is not repaid according to the agreed terms.

Financing Agreement

A contract in which one party provides money, goods, or services to another party in exchange for eventual repayment or other financial terms.

Priority

The established order of importance or precedence among items or tasks.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to obtain a loan, that provides a lender the right to repossession if the borrower defaults.