Number of Days' Sales in Average Receivables

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    Topic
  • April 30, 2014 at 7:44 pm #185203
    Anonymous
    Inactive

    In CPAexcel, for Number of Days’ Sales in Average Receivables, it says the equation is:

    “(300 or 360 or 365 (or other measure of business days in a year)) / Accounts Receivable Turnover”

    So which number do you use on the exam, 300, 360, or 365? Same goes for Number of Days’ Supply in Inventory.

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  • April 30, 2014 at 7:50 pm #548767
    Anonymous
    Inactive

    I'm pretty sure it will state in the problem which number of days to use.

    April 30, 2014 at 7:50 pm #548782
    Anonymous
    Inactive

    I'm pretty sure it will state in the problem which number of days to use.

    April 30, 2014 at 9:42 pm #548769
    super_cpa
    Participant

    Per Yaeger's instructor Cindy, if you get an ugly number (e.g. 13, 51) use 365. If you get a nice whole number (e.g. 20, 50) use 360.

    - "Of all people, you know who I am… who the world needs me to be. I’m Wonder Woman."

    April 30, 2014 at 9:42 pm #548784
    super_cpa
    Participant

    Per Yaeger's instructor Cindy, if you get an ugly number (e.g. 13, 51) use 365. If you get a nice whole number (e.g. 20, 50) use 360.

    - "Of all people, you know who I am… who the world needs me to be. I’m Wonder Woman."

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