Operating Cycle: All Stars Ltd Has Inventory of $44,233 and Cost

question 24

Multiple Choice

Operating cycle: All Stars Ltd has inventory of $44,233 and cost of sales of $512,902. The company has an operating cycle of 74 days. What is the company's days' sales outstanding (DSO) ?

• A) 43 days
• B) 32 days
• C) 49 days
• D) 26 days

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the mean.

Variance

A measure of the spread between numbers in a dataset, expressing how much the numbers differ from the average value.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is true, used as a threshold to gauge the strength of the evidence against the null hypothesis.

Standard Deviation

Measures the amount of variance or dispersion of a set of values; a low standard deviation indicates that the values are close to the mean.