Which of the following measures the average days of sales committed to the extension of trade credit?
A)sale-to-cash conversion period
B)inventory-to-sale conversion period
C)purchase-to-payment conversion period
D)cash conversion cycle period

Question

Quizplus · Accepted Answer

The sale-to-cash conversion period measures the average number of days a company takes to collect cash from sales, which directly relates to the extension of trade credit to customers.

Which of the Following Measures the Average Days of Sales