A Dummy Activity Is Used to Show a Precedence Relationship

question 26

Multiple Choice

A dummy activity is used to show a precedence relationship, but it does not represent a

• A) relationship between activities.
• B) change in relationship.
• C) real activity.
• D) passage of time.

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Definitions:

Accounts Receivable

Outstanding payments from customers for goods or services a company has already delivered.

Average Collection Period

The average number of days it takes for a business to receive payments from its customers for invoices issued, indicative of the effectiveness of a company's credit and collection policies.

Net Sales

The amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for.