The Formula for the Average Sale Period Is: Average Sale

question 274

True/False

The formula for the average sale period is: Average sale period = Accounts receivable turnover ÷ Inventory turnover.

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Definitions:

Consideration

The benefit, interest, or value that induces a party to enter into a contract; essential for a contract to be legally binding.

Legal Value

The recognized worth or significance of something within a legal context, often relating to the enforceability of a contract or transaction.

Legal Relations

The relationships and obligations created by laws between individuals, organizations, or states.

Proposal

An offer made by one party to another, intending to create a legal obligation upon acceptance.