Days' sales in receivables is the ratio of average net accounts receivable to one day's sales.

Name: Days' sales in receivables is the ratio of average net accounts receivable to one day's sales.
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

Days' sales in receivables formula involves dividing average net accounts receivable by one day's sales, resulting in the number of days it takes to collect outstanding receivables. Thus, the given statement is true.

Days' Sales in Receivables Is the Ratio of Average Net