How is the number of days to collect accounts receivable computed? What information does this ratio provide?
What will be an ideal response?
Average number of days to collect accounts receivable = 365 ÷ Accounts receivable turnover ratio
This ratio measures how many days, on average, it takes a company to collect its accounts
receivable. Because longer collection periods increase costs, shorter periods are obviously more desirable.
You might also like to view...
What depicts the most complex bargaining structure in collective bargaining?
A. a teachers' union representing a large city's school district B. a craft union representing employees in two facilities of one company C. a carpenters' union representing the employees of one construction firm D. a craft union representing one facility E. an industrial union representing all hourly employees of several companies
________ skills are relatively important for first-level managers. Hence, most supervisors start out working in a department they now supervise.
A. Decision-making B. Technical C. Conceptual D. Human relations
The production emphasis of a company pursuing a broad differentiation strategy usually involves
A. the aggressive pursuit of economies of scale and experience-curve effects. B. emphasis on building differentiating features that buyers are willing to pay for and includes wide selection and many product variations. C. strong efforts to be a leader in manufacturing process innovation. D. eliminating cost reduction and decreasing quality and essential features to boost profitability. E. developing a distinctive competence in zero-defect manufacturing techniques.
What does the term "mitigation" refer to in connection with damages?
A) The duty of a nonbreaching party to make reasonable efforts to reduce damages B) The calculation of lost profits in determining damages C) The combination of the different kinds of damages into a single dollar amount D) The duty of the breaching party to make a damages payment as soon as practical E) The requirement of the nonbreaching party to allow the breaching party one final chance to perform the contract before being entitled to collect damages