The Number of Days' Sales Uncollected

question 10

Multiple Choice

The number of days' sales uncollected:

• A) Measures a company's ability to pay its bills on time.
• B) Measures a company's debt to income.
• C) Is used to evaluate the liquidity of receivables.
• D) Is calculated by dividing accounts receivable by sales.
• E) Is calculated by dividing sales by accounts receivable.

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Definitions:

Service

Activities or benefits provided by one entity to another which do not result in the ownership of anything.

Technical

Technical relates to skills, knowledge, or tasks that require specialized education or expertise, often associated with fields such as engineering, computing, or the sciences.

Technical Subsystem

The component of a larger system focused on the technological and operational functions necessary for the system's overall performance.

Production Function

An economic model that describes the relationship between inputs and the quantity of output produced.