The Number of Days' Sales in Receivables

question 125

Multiple Choice

The number of 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 Net Credit Sales divided by Average Receivables
• D) is not meaningful and therefore is not used

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Definitions:

Excessive Length of Time

A period that extends beyond what is considered reasonable or acceptable.

Medical Attention

Professional care or treatment provided by healthcare professionals to address illness, injury, or medical conditions.

Neglect

Neglect involves failing to care for or attend to someone or something properly, often leading to adverse effects or deterioration.

Evidence of Burns

Indicators or signs on the body that suggest the occurrence of burns, such as discoloration, blisters, or damaged skin.