Use the tables for the question(s)below.
Balance Sheet

-The balance sheet and income statement of a particular firm are shown above.What does the accounts receivable days ratio tell you about this company?
A)It takes on average about 4 weeks to collect payment from its customers.
B)It takes on average about 6 weeks to collect payment from its customers.
C)It takes on average about 7 weeks to collect payment from its customers.
D)It takes on average about 8 weeks to collect payment from its customers.
E)It takes on average about 11 weeks to collect payment from its customers.

Question

Use the tables for the question(s)below.
Balance Sheet
  
-The balance sheet and income statement of a particular firm are shown above.What does the accounts receivable days ratio tell you about this company?
A)It takes on average about 4 weeks to collect payment from its customers. 
B)It takes on average about 6 weeks to collect payment from its customers. 
C)It takes on average about 7 weeks to collect payment from its customers. 
D)It takes on average about 8 weeks to collect payment from its customers. 
E)It takes on average about 11 weeks to collect payment from its customers.

Quizplus · Accepted Answer

The accounts receivable days ratio indicates the average number of days it takes for a company to collect payment from its customers after a sale has been made. A result of about 4 weeks suggests a relatively quick collection period.

Use the Tables for the Question(s)below