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:

Degradation

The process by which something is reduced in quality, value, or integrity.

Cyclical Pattern

A sequence of events or phenomena that recur in a regular, predictable cycle or series.

Domestic Violence

A pattern of behavior in any relationship that is used to gain or maintain power and control over an intimate partner, including physical, sexual, emotional, economic, or psychological actions or threats.

Patriarchal

Related to a social system where men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.