A Firm Has Total Assets of $500 Million, Including Its

question 85

Multiple Choice

A firm has total assets of $500 million, including its accounts receivable, which is worth $120 million. The annual sales of the firm is $650 million. The days sales outstanding (DSO) ratio of the firm is:

• A)48.2 days.
• B)52.7 days.
• C)39.6 days.
• D)82.1 days.
• E)66.5 days.

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Definitions:

Restatement of Law

A publication that seeks to inform judges and lawyers about general principles of common law in the United States.

Common Law

A body of unwritten laws based on legal precedents established by the courts.

Federal Judiciary

The branch of the United States government responsible for interpreting the law, consisting of the Supreme Court and lower federal courts.

Executive Branch

The branch of government responsible for implementing, supporting, and enforcing the laws made by the legislative branch and interpreted by the judiciary.