Days' Sales in Receivables Is a Measure of a Company's

question 47

True/False

Days' sales in receivables is a measure of a company's ability to collect their accounts receivable.

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Definitions:

Net Income

The earnings left for a company after paying off all its costs and tax obligations from its revenue.

Times Interest Earned Ratio

A financial metric used to determine a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, reported on the income statement.

Income Before Taxes

The earnings of a company before taxes have been deducted.