Which of the following is true of days' sales in receivables?
A) It measures how many days it takes to order and receive inventory.
B) It measures how many days it takes to collect the average level of accounts receivable.
C) It measures how many days it takes to sell inventory.
D) It measures how slowly the inventory is depreciated.
Correct Answer:
Verified
Q117: A six-month note receivable for $4,000 at
Q118: On December 1, 2015, Parsons Inc. sold
Q119: On October 1, 2015, Android Inc. made
Q121: The accounts receivable turnover ratio measures:
A)how well
Q124: Barker Sales has a days' sales in
Q125: Which of the following is true of
Q126: A company has net credit sales of
Q127: What is the acid-test ratio for a
Q207: An acid-test ratio of 1.0 is considered
Q217: The acid-test ratio is also known as
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents