Which of the Following Is TRUE of Days' Sales in Receivables

question 61

Multiple Choice

Which of the following is TRUE of days' sales in receivables?

• A)Days' sales in receivables measures how many days it takes to order and receive inventory.
• B)Days' sales in receivables measures how frequently during the year the accounts receivable are collected.
• C)Days' sales in receivables measures how slowly the inventory is depreciated.
• D)Days' sales in receivables measures how many days it takes to sell inventory.

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