The following are receivable collection efficiency ratios for governments: property tax collection rate, days' revenue in receivables, and number of days' cash on hand.

Question

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The number of days cash on hand is a liquidity indicator-not a collection efficiency ratio. General governments measure property tax collection efficiency in terms of percentage of taxes collected (or not collected) in the year of the tax levy, or the ratio of property taxes receivable to property tax revenues.

The Following Are Receivable Collection Efficiency Ratios for Governments: Property