The Days' Sales Uncollected Ratio

question 132

Multiple Choice

The days' sales uncollected ratio:

• A)Is used to compare a company to other companies in the same industry.
• B)Is used to compare between current and prior periods.
• C)Is used to compare a company to other companies in the same industry and is used to compare between current and prior periods.
• D)Measures how much time is likely to pass before a company receives cash receipts from credit sales equal to the current amount of accounts receivable.
• E)All of these answers are correct.

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