The fiNancial Ratio Days' Sales in Receivables Is Measured As

question 202

Multiple Choice

The financial ratio days' sales in receivables is measured as:

• A) Receivables turnover plus 365 days.
• B) Accounts receivable times 365 days.
• C) Accounts receivable plus sales, divided by 365 days.
• D) 365 days divided by receivables turnover.
• E) 365 days divided by accounts receivable.

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Definitions:

Advance

A payment made beforehand, often as part of a contractual agreement or as a loan that expects repayment under specific terms.

Interest Expense

The cost incurred by an entity for borrowed funds, which is reported on the income statement.

Pre-Acquisition Dividend

Dividends declared by a subsidiary prior to being acquired or controlled by the parent company.

Final Dividend

The last dividend payment made by a company to its shareholders for a fiscal year, after the company's final annual earnings are known.