The Days' Sales Uncollected Ratio Is Used To

question 157

Multiple Choice

The days' sales uncollected ratio is used to:

• A)Measure how many days of sales remain until the end of the year.
• B)Determine the number of days that have passed without collecting on accounts receivable.
• C)Identify the likelihood of collecting sales on account.
• D)Estimate how much time is likely to pass before the amount of accounts receivable is collected.
• E)Measure the amount of layaway sales for a period.

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Definitions:

Compounded Monthly

Interest calculated on the principal sum and also on the accumulated interest of previous periods of a deposit or loan, compounded every month.

Equal Payments

Payments that are the same in amount, typically referring to installments paid over a certain period of time.

Outstanding Balance

the amount of money that is still owed or remains unpaid on a loan, credit card, or another financial obligation.

Combined Equivalent

A combined or total equivalent that incorporates various elements or aspects to express a singular value or concept.