The Number of Days' Sales Uncollected

question 158

Multiple Choice

The number of days' sales uncollected:

• A) Measures how much time is likely to pass before the current amount of accounts receivable is received in cash.
• B) Can be used for comparisons to other companies in the same industry.
• C) Can be used for comparisons between current and prior periods.
• D) Reflects the liquidity of receivables.
• E) All of these.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Common Stock

A type of security that represents ownership in a corporation and entails voting rights and a share in profits through dividends.

Cumulative

Describing something that increases or accumulates over time, often used in the context of dividends, voting rights, or data accumulation.

Fully Participating

Fully participating describes a type of equity security or preferred stock that has the right to participate in certain additional dividends or distributions beyond a specified amount.