A company must have less than 30 days' sales uncollected in order to have enough liquidity.

Name: A company must have less than 30 days' sales uncollected in order to have enough liquidity.
Brand: Quizplus
Rating: 4.8 (25 reviews)

Question

Quizplus · Accepted Answer

The statement is overly simplified and not accurate. The liquidity of a company depends on a variety of factors such as current assets, liabilities, cash flow, and credit terms with customers. The number of days' sales uncollected alone cannot determine a company's liquidity.

A Company Must Have Less Than 30 Days' Sales Uncollected