Days' Sales Uncollected Cannot Be Calculated Without First Knowing the Receivables

question 62

True/False

Days' sales uncollected cannot be calculated without first knowing the receivables turnover.

---

Definitions:

Business Judgment Rule

A legal principle that protects corporate directors from liability for decisions made in good faith, assuming they were informed and believed the decisions were in the company's best interest.

Board Of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization.

Shareholder's Right

Legal entitlements and powers granted to shareholders of a company, such as voting on corporate matters and receiving dividends.

Bylaws

Regulations set by a corporation or other body to control its own actions and management.