The Days' Sales in Receivables Measures

question 77

Multiple Choice

The days' sales in receivables measures:

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

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Definitions:

80/20 Rule

A principle, also known as the Pareto Principle, that suggests 80% of effects come from 20% of causes, often used in business and economics to focus efforts on most productive inputs.

Marketing Synergies

The combined effect of different marketing activities that together enhance the overall marketing impact.

Product Synergies

The enhanced value created when two or more products or services are combined, offering greater benefits or utility than when used separately.

Market Segments

Groups of consumers within a broader market who have similar characteristics and preferences which businesses target with specific marketing strategies.