contestada

36) All of the following are true of the number of days' sales uncollected ratio except: A) Can be used for comparisons between current and prior periods. B) Reflects the liquidity of receivables. C) Is most effective in evaluating the cash sales of a company. D) Measures how much time is likely to pass before the current amount of accounts receivable is received in cash. E) Can be used for comparisons to other companies in the same industry.

Respuesta :

Lanuel

Answer:

C) Is most effective in evaluating the cash sales of a company.

Explanation:

A number of days' sales uncollected ratio can be defined as a liquidity ratio that is typically used by investors and creditors to determine or ascertain the number of days left to obtain all account receivable. Thus, it measures the amount of days left for a debtor to pay a credit.

All of the following are true of the number of days' sales uncollected ratio;

I. Can be used for comparisons between current and prior periods.

II. Reflects the liquidity of receivables.

III. Measures how much time is likely to pass before the current amount of accounts receivable is received in cash.

IV. Can be used for comparisons to other companies in the same industry.

Otras preguntas