In Addition to Days' Sales in Receivables and Days' Sales

question 410

Multiple Choice

In addition to days' sales in receivables and days' sales in inventory we could calculate "days' sales in payables" by computing the accounts payable turnover and dividing it into 365 days. In words,
What do these ratios tell us?

• A) The number of days it takes before the current ratio falls to zero.
• B) The number of days of sales needed to make a profit.
• C) The time it takes to completely replace total current assets.
• D) The rate at which assets are replaced.
• E) How long it takes, on average, to entirely deplete these accounts.

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Definitions:

Chromatin

The complex of DNA and proteins that forms chromosomes within the nucleus of eukaryotic cells.

Alternative Splicing

A regulatory mechanism in gene expression that allows a single gene to code for multiple proteins by varying the pattern of exon splicing.

Regulation of Transcription

The method of managing RNA synthesis from a DNA template, an essential phase in the expression of genes.

mRNA Processing

The series of modifications mRNA undergoes after transcription, including splicing, 5' capping, and addition of a poly-A tail, making it ready for translation.