A Business with Days' Sales in Receivables of 39 Days

question 104

True/False

A business with days' sales in receivables of 39 days is more liquid than one with a collection period of 31 days.

---

Definitions:

Structural Devices

Structural devices are techniques used in writing and speech to organize and arrange content for clarity, impact, and effect, such as paragraphs, chapters, stanzas, and bullet points.

Settlement

An agreement reached by negotiating parties, especially in a legal context, to resolve a dispute without continuing to trial.

Court

A governmental institution authorized to resolve legal disputes, interpret laws, and administer justice.

Agreement

An agreement or compact formed between two independent nations.