The Days' Sales Uncollected Ratio Is Used to

question 37

Multiple Choice

The days' sales uncollected ratio is used to

• A) Measure how many days of sales remain until the end of the year
• B) Determine the number of days that have passed without collecting on accounts receivable
• C) Identify the likelihood of collecting sales on account
• D) Estimate how much time is likely to pass before cash receipts from credit sales equal the current amount of accounts receivable
• E) Measure the amount of layaway sales for a period