The Days' Sales in Receivables Measures

question 29

Multiple Choice

The days' sales in receivables measures:

• A)how many days it takes,on average,to sell the inventory.
• B)how many days it takes,on average,to collect receivables.
• C)the number of times per year a company sells goods and collects receivables.
• D)how well a company can pay its current liabilities with its current assets.

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Definitions:

Managerial Roles

The specific functions or responsibilities that managers assume in an organization to achieve goals, including planning, organizing, leading, and controlling.

Monitor

To observe and check the progress or quality of (something) over a period of time; keep under systematic review.

Scan

To examine or review with the purpose of locating information or identifying certain elements, often used in the context of analysis or research.

Social Capital

The web of connections between individuals who reside and are employed within a specific community, facilitating the efficient operation of that society.