The number of days' sales uncollected is used to:
A)Measure how many days of sales remain until the end of the year.
B)Determine the number of days that have passed without collecting on accounts receivable.
C)Identify the likelihood of collecting sales on account.
D)Estimate how much time is likely to pass before the current amount of accounts receivable is received in cash.
E)Measure the amount of cash sales during a period.

Question

Quizplus · Accepted Answer

The number of days' sales uncollected is a measure of how long it takes for a company to collect its accounts receivable. It estimates the number of days that will pass before the current amount of accounts receivable is received in cash. This can be useful for analyzing a company's collection policies and cash flow.

The Number of Days' Sales Uncollected Is Used To