Days' Sales Uncollected Equals 365 Days Divided by

question 107

Multiple Choice

Days' sales uncollected equals 365 days divided by

• A)net sales.
• B)average net accounts receivable.
• C)net income.
• D)the receivable turnover.

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Definitions:

Subsidiary's Books

The set of financial records and accounts maintained by a subsidiary, detailing its transactions, assets, liabilities, and equity.

Fair Values

The selling price of an asset or the payment required to settle a liability in a regulated transaction with market participants, at the time of appraisal.

Net Assets

The total assets of an entity minus its total liabilities, representing the owners' equity.

Fair Market Value

The estimated price at which an asset or service would change hands between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.