The ability of a company to collect receivables is measured by which ratio?
A)Inventory turnover ratio
B)Day's sales in receivables
C)Current ratio
D)Acid-test ratio

Question

Quizplus · Accepted Answer

The ability of a company to collect receivables is measured by the Day's sales in receivables ratio, which indicates the average number of days it takes for a company to collect its accounts receivables.

The Ability of a Company to Collect Receivables Is Measured