All of the Following Are True of the Number of Days

question 129

Multiple Choice

All of the following are true of the number of days' sales uncollected ratio except:

• A)Is most effective in evaluating the cash sales of a company.
• B)Can be used for comparisons to other companies in the same industry.
• C)Can be used for comparisons between current and prior periods.
• D)Reflects the liquidity of receivables.
• E)Measures how much time is likely to pass before the current amount of accounts receivable is received in cash.

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