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.

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Definitions:

Interest Accrued

Interest that has been incurred but not yet paid, recorded as a liability on the balance sheet.

Cash Dividends

Payments made by a company out of its earnings to its shareholders in the form of cash.

Long-Term Investments

Assets that a company intends to hold for more than one year, such as stocks, bonds, real estate, or machinery.

Unrealized Gain-Equity

The increase in the value of investments that a company holds in other companies' stocks, which have not been sold and thus the gain has not been realized.