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:

Customer Orders

Requests by customers to purchase goods or services from a seller.

Supplier Performance

The assessment of a supplier's ability to meet buyer expectations, including factors such as product quality, delivery time, and compliance with terms.

Rapid Response

The ability to react quickly and effectively to unexpected situations or changes, often crucial in emergency or customer service scenarios.

On-Time Delivery

The process of delivering goods or services to customers at the promised or scheduled time without delays.