Days' Sales in Receivables

question 144

Multiple Choice

Days' sales in receivables

• A) is an estimate of the length of time the receivables have been outstanding
• B) measures the number of times the receivables turn over each year
• C) is credit sales divided by average receivables
• D) is not meaningful and therefore is not used

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Definitions:

Liquid and Riskless

Refers to assets that can be easily converted to cash without significant loss of value and carry minimal risk of loss.

Board of Governors

The leading body of a central bank or other regulatory institution, responsible for overseeing the management and operations.

Fed

Short for the Federal Reserve, which is the central banking system of the United States responsible for monetary policy.

District Banks

Components of the Federal Reserve System, each serving a specific geographic area in the United States, involved in banking regulation and policy implementation.