Deegan Industries Has an Accounts Receivable Turnover Rate of 8

question 168

Multiple Choice

Deegan Industries has an accounts receivable turnover rate of 8.Which of the following statements is not true?

• A)Deegan's accounts receivable are more liquid than those of a business whose accounts receivable turnover rate is 5.
• B)Deegan waits approximately 46 days to make collections of its credit sales.(Use 365 days in a year. )
• C)Deegan writes off accounts receivable as uncollectible if they are over 45 days old.
• D)Deegan's net credit sales are about eight times the amount of its average accounts receivable.

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