Days' Sales in Receivables Is Computed as Average Net Accounts

question 35

True/False

Days' sales in receivables is computed as average net accounts receivables divided by 365 days.

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Definitions:

Accounts Payable

Money owed by a company to its creditors or suppliers for goods and services that have been received but not yet paid for.

Debit Entry

An accounting entry that increases an asset or expense account, or decreases a liability, equity, or revenue account.

Credit Entry

An accounting entry that increases a liability or equity account or decreases an asset or expense account.

Service Revenue

Income earned by a company for services provided to customers or clients.