A Company That Has Days' Sales Uncollected of 30 Days

question 211

True/False

A company that has days' sales uncollected of 30 days and days' sales in inventory of 18 days implies that inventory will be converted to cash in about 12 days.

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Definitions:

Derivative Suit

A lawsuit brought by shareholders on behalf of the corporation.

Direct Injury

A physical or emotional harm caused directly by an incident or action without intermediate steps.

Quorum

The minimum number of members who must be present at a meeting to make the proceedings of that meeting valid.

Directors

Individuals elected by shareholders to manage and oversee the affairs of a corporation, forming its board.