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:

Labor Organizations

Groups formed by workers to protect their rights and interests, including unions that negotiate for better wages, working conditions, and benefits.

Middle-Class Reformers

Individuals typically from the middle economic strata of society who advocate for social, political, or environmental changes, often aiming to address injustices or inefficiencies.

Private Schools

Educational institutions that operate independently of the public school system and are funded through tuition payments and private sources.

Asylums

Historic institutions designed for the care and confinement of individuals with mental illness or disability, often criticized for their conditions and treatment of patients.