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

question 30

Multiple Choice

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

• A)It measures how many days it takes to order and receive inventory.
• B)It measures how many days it takes to collect the average level of accounts receivable.
• C)It measures how many days it takes to sell inventory.
• D)It measures how slowly the inventory is depreciated.

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Definitions:

Esteem

The regard in which an individual or entity is held by others, often reflecting respect, admiration, or importance.

Cognitive Component

Part of an attitude that consists of a person's knowledge and perception of the attributes of an object or concept.

Altering

The process of making changes to something, often to tailor or modify it to fit a particular need or requirement.

Perception

The process by which individuals select, organize, and interpret sensory information to form a meaningful picture of the world.