Which of the Following Is TRUE of Days' Sales in Receivables

question 145

Multiple Choice

Which of the following is TRUE of days' sales in receivables?

• A) Days' sales in receivables measures how many days it takes to order and receive inventory.
• B) Days' sales in receivables measures how frequently during the year the accounts receivable are collected.
• C) Days' sales in receivables measures how many days it takes to sell inventory.
• D) Days' sales in receivables measures how slowly the inventory is depreciated.

---

Definitions:

Protectionism

Economic policy measures implemented by a government to shield domestic industries from foreign competition, often through tariffs and quotas.

Cultural Miscues

Misunderstandings or errors in communication that occur due to differences in cultural norms and expectations.

International Business

Commercial transactions and activities that occur across national borders.

Transnational Corporation

A global corporation or multinational enterprise that operates worldwide on a borderless basis.