The Days' Sales Uncollected Ratio Is Used To

question 204

Multiple Choice

The days' sales uncollected ratio is used to:

• A) Measure the amount of layaway sales for a period.
• B) Identify the likelihood of collecting sales on account.
• C) Estimate how much time is likely to pass before cash receipts from credit sales equal the amount of the existing accounts receivable.
• D) Measure how many days of sales remain until the end of the year.
• E) Determine the number of days that have passed without collecting on accounts receivable.

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