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:

Movement

Refers to a change in position, location, or state of an object or concept over time.

Substitute Goods

These are goods that can be used in place of one another, such that the increase in price of one leads to an increase in demand for the other.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Demand

The desire and willingness of consumers to purchase goods or services at a given price level.