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:

Random Walk

The hypothesis that stock market prices evolve according to a random path, making it impossible to consistently predict their future direction.

Index Funds

A type of mutual fund with a portfolio constructed to match or track the components of a financial market index, such as the S&P 500, aiming to offer broad market exposure, low operating expenses, and low portfolio turnover.

Moral Hazard

A situation where one party engages in risky behavior or fails to act in good faith because another party bears the consequences or costs.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.