Days' Sales in Receivables Measures the Return on Average Receivables

question 68

True/False

Days' sales in receivables measures the return on average receivables using credit sales.

---

Definitions:

Automatic Processing

The quick, unconscious, and effortless way in which the brain processes information, allowing individuals to perform tasks without deliberate attention to detail.

Effortful Processing

Effortful processing is a type of information processing that requires active work and attention in order to encode and store information in memory.

Encoding

The initial process of recording information in a form usable to memory.

Sensory Memory

The shortest-term element of memory, responsible for the ability to momentarily retain impressions of sensory information after the original stimuli have ended.