Which One of the Following Statements Is Correct If a Firm

question 69

Multiple Choice

Which one of the following statements is correct if a firm has an accounts receivable turnover measure of 10?

• A)It takes the firm 36.5 days to pay its creditors.
• B)It takes the firm 36.5 days to sell its inventory and collect payment from the sale.
• C)It take the firm 36.5 days to collect payment for a sale.
• D)The firm has ten times more in accounts receivable than it does in cash.
• E)It takes an average of ten days to collect payment from the firm's customers.

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