A company increased its days' sales outstanding from 35 days to 43 days. This implies the company is more efficient.

Name: A company increased its days' sales outstanding from 35 days to 43 days. This implies the company is more efficient.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in days' sales outstanding indicates that it is taking longer for the company to collect payment from its customers. This suggests that the company's efficiency has decreased, as it is taking longer to convert sales into cash.

A Company Increased Its Days' Sales Outstanding from 35 Days