Which of the Following Statements Is Not True

question 68

Multiple Choice

Which of the following statements is not true?

• A) The receivables turnover ratio indicates the average number of times the company completes the selling and collecting cycle during the year.
• B) The days-to-collect measure is 365 days divided by the receivables turnover ratio.
• C) The receivables turnover ratio and days-to-collect measure move in opposite directions.
• D) A high receivables turnover ratio means a slower turnover.

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