Days' Sales in Receivables Is Also Called the Collection Period

question 41

True/False

Days' sales in receivables is also called the collection period.

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Definitions:

Articles Of Incorporation

The document filed with the appropriate state official, usually the Secretary of State, when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.

Incorporated

Incorporated refers to the process of forming a corporation, which is a legal entity that is distinct from its owners, providing them with limited liability.

Appropriate State

A legal or suitable condition or status that a subject or entity is in, according to laws or regulations.

Certificate Of Incorporation

An official document issued by a government authority that establishes a corporation's legal existence.