The Number of Days' Sales in Receivables Is an Estimate

question 32

True/False

The number of days' sales in receivables is an estimate of the length of time the accounts receivable have been outstanding.

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Definitions:

Redeemed

Refers to the process of exchanging a financial instrument, such as a bond or coupon, for its cash value or for another specified benefit.

Specified Price

The agreed-upon price for goods or services stipulated in a contract.

Shareholder's Derivative Suit

A legal action initiated by a shareholder on behalf of the corporation against a third party, often the corporation's executives or directors, for mismanagement or fraud.

Corporate Directors

Individuals elected by shareholders to oversee the management of a corporation and ensure that it is being run in accordance with their interests.