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:

Parity Ratio

A measure used to compare the value of one form of a commodity (e.g., agricultural produce) to another, often with respect to trade or exchange rates.

Indices

Statistical measures that track changes in a representative group of individual data points, often used to assess economic and financial performance.

Price Support

A government policy or mechanism that sets a minimum price for a product or commodity to help stabilize the market and ensure income for producers.

Taxpayers

Individuals or entities that are obligated to pay taxes to a government authority, based on earnings, property ownership, or consumption.