Arabella Went to Her Accountant and Learned About DOI, Defined

question 17

Multiple Choice

Arabella went to her accountant and learned about DOI, defined as the ______.

• A)measures the number of days it takes to collect on accounts receivable
• B)measures the average number of days it takes to sell the entire inventory of a company
• C)measures the number of days it takes you to pay your bills
• D)equals DOI + DSO - DPO

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Definitions:

Asset

Resources owned or controlled by a business that are expected to provide future economic benefits.

Original Cost

The initial price paid or cost of acquisition of an asset, before any depreciation, amortization, or impairment costs are deducted.

Increased Revenues

A rise in the amount of money a company earns from its business activities over a certain period.

Fixed Costs

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance premiums.