The Days' Sales in Receivables Measures

question 29

Multiple Choice

The days' sales in receivables measures:

• A)how many days it takes,on average,to sell the inventory.
• B)how many days it takes,on average,to collect receivables.
• C)the number of times per year a company sells goods and collects receivables.
• D)how well a company can pay its current liabilities with its current assets.

Understand the concept and purpose of budgets in organizations.

Recognize different types of budgeting procedures and their specific applications.

Identify the steps involved in the budgeting process.

Grasp the role of various departments and stakeholders in budget preparation and implementation.

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Definitions:

Restricted Contribution

Funds given to an entity with specific conditions or purposes attached, limiting their use.

Endowment Contributions

Financial gifts provided to an institution, typically with the stipulation that the principal remains intact while the investment income is used for organizational purposes.

Restricted Fund

Funds that are earmarked for a particular purpose or project by donors or grantors and cannot be freely used for any other expenditures.

Investment Income

Income earned from investments, including dividends, interest, and capital gains from securities, real estate, or other assets.