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

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

Quizplus · Accepted Answer

An increase in days' sales outstanding means that the firm is taking longer to collect payments from its customers. This indicates that the firm is less efficient in its collection process and may have difficulty managing its cash flow. Therefore, statement is false.

A Firm Increased Its Days' Sales Outstanding from 35 Days