Days' Sales in Receivables Is the Ratio of Average Net

question 128

True/False

Days' sales in receivables is the ratio of average net accounts receivable to one day's sales.

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Definitions:

Donee Beneficiary

A third party who benefits from a contract made between two other parties, where the intent is to benefit the third party.

Gratuitous Assignment

A transfer of rights or property without consideration or payment from the recipient.

Written Statement

A formal, documented expression of facts or opinions, which is signed and usually legally binding.

Creditor Beneficiary

A third party that benefits from a contract made between two other parties, primarily involving debt repayment.