If Days' Sales in Receivables Are Materially Longer Than the Credit

question 26

True/False

If days' sales in receivables are materially longer than the credit terms,this indicates a collection problem.

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Definitions:

Tell, Show, Tell Rule

A communication technique where information is first stated, then demonstrated or illustrated, and finally reiterated to enhance understanding.

Implicit Favorite

An underlying preference or bias for a particular option or person that is not explicitly acknowledged.

Preferred Choice

The option that is most favorable or desirable to an individual or group based on their values, needs, or available information.

Emotions

Complex psychological states that involve subjective experience, physiological response, and behavioral or expressive response.