Which of the Following Is TRUE of Days' Sales in Receivables

question 61

Multiple Choice

Which of the following is TRUE of days' sales in receivables?

• A)Days' sales in receivables measures how many days it takes to order and receive inventory.
• B)Days' sales in receivables measures how frequently during the year the accounts receivable are collected.
• C)Days' sales in receivables measures how slowly the inventory is depreciated.
• D)Days' sales in receivables measures how many days it takes to sell inventory.

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Definitions:

ASME

The American Society of Mechanical Engineers, an organization that sets standards and codes for engineering practices, including dimensions, tolerances, and technical specifications.

American Society

A generalized term that might refer to various official societies or associations based in the United States.

Partial View

A drawing technique used to show a specific portion of an object, emphasizing details that might be obscured in a full view.

Half View

A drawing technique where only half of the object is illustrated to reveal interior and exterior features simultaneously.