A Company Has Net Sales of $850,000,Beginning Net Receivables of $230,000

question 14

Multiple Choice

A company has Net sales of $850,000,Beginning net receivables of $230,000 and Ending net receivables of $190,000.What is the days' sales in accounts receivable? (Please round to nearest whole day.)

• A) 82 days
• B) 99 days
• C) 93 days
• D) 90 days

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Definitions:

Overhead

describes the ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and insurance.

Job Order Costing

A costing method used in manufacturing where costs are assigned to specific orders, batches, or lots.

Process Costing

A costing method used where similar products are manufactured in a continuous process. It assigns average costs to each unit, making it ideal for industries like refining or manufacturing.

Cost Accounting Systems

Systems utilized by businesses to track, record, and analyze costs associated with their operations, facilitating decision-making and financial planning.