A company must have less than 30 days' sales uncollected in order to be adequately liquid.

Name: A company must have less than 30 days' sales uncollected in order to be adequately liquid.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The number of days' sales uncollected is a measure of how quickly a company can convert its accounts receivable into cash, but there is no strict rule that it must be less than 30 days to be considered adequately liquid. Adequate liquidity depends on the industry and specific company circumstances.

A Company Must Have Less Than 30 Days' Sales Uncollected