These are sample practice MCQs created for exam preparation. These are NOT official exam questions.
ACCOUNTS RECEIVABLE ANALYSIS: What is the Days Sales Outstanding (DSO)? (1) Average accounts receivable is $1.2M and daily credit sales average $40K (2) Annual credit sales are $14.6M and accounts receivable is $1.2M
Question:
ACCOUNTS RECEIVABLE ANALYSIS: What is the Days Sales Outstanding (DSO)? (1) Average accounts receivable is $1.2M and daily credit sales average $40K (2) Annual credit sales are $14.6M and accounts receivable is $1.2M
ACCOUNTS RECEIVABLE ANALYSIS: What is the Days Sales Outstanding (DSO)? (1) Average accounts receivable is $1.2M and daily credit sales average $40K (2) Annual credit sales are $14.6M and accounts receivable is $1.2M
Options
Answer: (D) EACH statement ALONE is sufficient
Explanation:
Statement (1): DSO = $1.2M/$40K = 30 days. Sufficient. Statement (2): Daily sales = $14.6M/365 = $40K. DSO = $1.2M/$40K = 30 days. Sufficient.
Explanation:
Statement (1): DSO = $1.2M/$40K = 30 days. Sufficient. Statement (2): Daily sales = $14.6M/365 = $40K. DSO = $1.2M/$40K = 30 days. Sufficient.
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