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:

Deposit Maturity

The end of a deposit term at which point the deposited funds plus any accrued interest are available to the account holder.

Deposit Date

The specific day on which funds are placed into an account.

Maturity Value

The total amount payable to an investor at the end of a fixed term investment, including the principal and the interest.

Interest Amount

The sum of money paid or earned as interest, calculated by applying the interest rate to the principal.