Days' sales in receivables may be abnormally high at the end of the year if sales volume expanded materially late in the year.

Name: Days' sales in receivables may be abnormally high at the end of the year if sales volume expanded materially late in the year.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If sales volume expanded materially late in the year, it is likely that there will be a higher amount of accounts receivable yet to be collected, resulting in a higher days' sales in receivables ratio. Therefore, option A is true.

Days' Sales in Receivables May Be Abnormally High at the End