The higher the receivable turnover,the lower the days' sales uncollected.

Name: The higher the receivable turnover,the lower the days' sales uncollected.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

This statement is true because the receivable turnover ratio measures how quickly a company collects its outstanding accounts receivable. A higher ratio indicates that the company is collecting its receivables more quickly, which means that there are fewer outstanding receivables and, therefore, fewer days' sales uncollected.

The Higher the Receivable Turnover,the Lower the Days' Sales Uncollected