Which One of the Following Statements Is NOT True

question 25

Multiple Choice

Which one of the following statements is NOT true?

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

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Definitions:

Living Standards

The level of wealth, comfort, material goods, and necessities available to a person or community.

Progressive Tax Structure

A tax system where the tax rate increases as the taxable amount increases, placing a higher burden on wealthier individuals.

Real Incomes

Real incomes refer to the amount of goods and services that can be purchased with a given amount of money, after adjusting for inflation.

Tax Revenues

The money acquired by governments via tax collection.