Examlex
Which of the following statements about PCR is not true?
Average Collection Period
The average number of days it takes for a business to collect its accounts receivable.
Accounts Receivable
Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.
Sales on Account
Transactions in which revenue is accounted for at the time of sale, but payment is deferred to a later date.
Operating Cycle
The period between the acquisition of inventory and the collection of cash from receivables, indicating the efficiency of a company's operations.
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