How Is the Figure for 'Average Days of Sales' Calculated

question 6

Multiple Choice

How is the figure for 'average days of sales' calculated?

• A) (Average net accounts receivable/Net sales)× 365 days
• B) (Average net accounts receivable × Net sales)/365 days
• C) (Average net accounts receivable/Net sales)/180 days
• D) (Average net accounts receivable/Net sales)× 180 days

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Definitions:

Social Contract Theory

A philosophical concept suggesting that people agree, either explicitly or implicitly, to surrender some freedoms to an authority in exchange for social order and protection.

Ethical Dilemmas

Situations in which a person is faced with difficult choices between conflicting moral principles or values.

Particular Relationships

Unique or specific connections and interactions between individuals based on personal, familial, or professional ties.

Mindfulness

A mental practice focusing on being acutely aware of what you're sensing and feeling in the moment, without interpretation or judgment.