Which One of the Following Statements Is NOT True

question 19

Multiple Choice

Which one of the following statements is NOT true?

• A) The accounts receivables turnover ratio measures how quickly the company collects on its credit sales.
• B) One ratio that measures the efficiency of a company's collection policy is days' sales outstanding (DSO).
• C) The more days that it takes the company to collect on its receivables, the more efficient the company is.
• D) DSO measures in days, the time the company takes to convert its receivables into cash.

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Definitions:

Innovators

Individuals or organizations that introduce new ideas, products, or methods into the market.

Early Majority

A group of consumers who adopt new products or innovations shortly after the early adopters have done so, contributing to wider acceptance and popularity.

Laggards

A term used in diffusion of innovation theory to describe individuals or groups that are last to adopt new technologies, products, or innovations, often due to skepticism or traditional values.

Continuous Innovation

The ongoing process of making regular, incremental improvements or updates to products, services, or processes.