The Ratio That Indicates How Many Days,on Average,it Takes to Collect

question 153

True/False

The ratio that indicates how many days,on average,it takes to collect the receivables is known as the days' sales in receivables.

---

Definitions:

Shutdown Point

The level of output at which a company is not making enough revenue to cover its variable costs, making it economically viable to cease production temporarily.

Accounting Profits

The total revenue of a business minus the explicit costs, reported on financial statements according to standard accounting practices.

Economic Profits

The disparity between total income and combined expenses, encompassing both out-of-pocket and hidden costs.

Economic Profits

The margin between an organization's complete earnings and its aggregate expenditures, covering both visible and hidden costs.