The Number of Days' Sales Uncollected

question 133

Multiple Choice

The number of days' sales uncollected:

• A) Is calculated by dividing sales by accounts receivable.
• B) Measures a company's ability to pay its bills on time.
• C) Is used to evaluate the liquidity of receivables.
• D) Measures a company's debt to income.
• E) Is calculated by dividing accounts receivable by sales.

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