Days' Sales Outstanding Can Be Computed in Two Logical Steps

question 48

Multiple Choice

Days' sales outstanding can be computed in two logical steps.In the second step:

• A)the collection period must be determined.
• B)the average daily sales are computed.
• C)the average daily sales are divided by the average net receivables.
• D)the average net receivables are divided by the average daily sales.

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Definitions:

Implicit Personality Theory

Sets of assumptions about how different types of people, personality traits, and actions are related to each other.

Personality Change

Alterations in an individual's patterns of thought, behavior, or emotion that are typically significant and impactful over time.

Social Categorization

The assignment of a person one has just met to a category based on characteristics the new person has in common with other people with whom one has had experience in the past.

Cognitive Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.