Which One of the Following Statements Is NOT True

question 2

Multiple Choice

Which one of the following statements is NOT true?

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

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Definitions:

Decimal-Inch

A unit of measurement used in the United States, where lengths are represented in decimal as opposed to fractions, for precise machined parts or engineering drawings.

Side View

A drawing or projection that represents an object as seen from the side, typically used to show depth or interior features.

Third-Angle Projection

A standard method of orthographic projection where the object is placed in the bottom right quadrant between the projection plane and the observer.

Top View

The view of an object looking straight down from above, showing the layout and arrangement of its top surface.