Which of the Following Is the Formula to Compute Day's

question 97

Multiple Choice

Which of the following is the formula to compute day's sales in receivable?

• A)Cost of goods sold/average inventory
• B)Net credit sales/average inventory
• C)Net credit sales/average net accounts receivable
• D)Average net accounts receivable/one day's sales

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Definitions:

Net Loss

A net loss occurs when a company's total expenses exceed its total revenues during a specific accounting period, indicating a negative financial performance.

Export Cost

Expenses associated with sending goods or services to another country for sale or trade.

Variable Manufacturing Costs

Costs that vary directly with the level of production output, including expenses like raw materials and hourly labor costs.

Managerial Decision-making

The process by which managers analyze options and make determinations regarding the best courses of action for the organization.