Which ratio measures the ability of a company to collect receivables?
A)Inventory turnover ratio
B)Current ratio
C)Day's sales in receivables
D)Acid-test ratio

Question

Quizplus · Accepted Answer

Day's sales in receivables ratio measures the number of days it takes a company to collect payment from its customers after a sale is made. It helps to determine how efficiently a company is managing its accounts receivables.

Which Ratio Measures the Ability of a Company to Collect