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

question 30

Multiple Choice

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

• A)It measures how many days it takes to order and receive inventory.
• B)It measures how many days it takes to collect the average level of accounts receivable.
• C)It measures how many days it takes to sell inventory.
• D)It measures how slowly the inventory is depreciated.

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