Days' Sales in Receivables Can Be Computed in Two Logical

question 197

Multiple Choice

Days' sales in receivables can be computed in two logical steps. In the second step:

• A) the collection period must be determined.
• B) the average daily sales are computed.
• C) the average daily sales are divided by the average receivables.
• D) the average receivables are divided by the average daily sales.

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Definitions:

Delusion

A strongly held belief that is maintained despite being contradicted by reality or rational argument, typically a symptom of psychiatric disorders.

Disturbed Emotion

A state of emotional turmoil or imbalances, often associated with mental health disorders or significant stress.

Neurotransmitter

A chemical substance released at the end of a nerve fiber by the arrival of a nerve impulse, causing the transfer of the impulse to another nerve fiber, a muscle fiber, or some other structure.

Schizophrenic Disorders

A group of severe mental health conditions characterized by disordered thoughts, perceptions, and emotions.