Which of the following generally indicates a positive change?
A) The number of days' sales in receivables decreases.
B) Earnings per share decreases.
C) The current ratio decreases.
D) The times-interest-earned ratio decreases.

Question

Quizplus · Accepted Answer

When the number of days sales in accounts receivable decrease, it is usually an indicator that credit sales are being collected and that the firm is managing well the credit extended to customers. This ratio is both a measure of solvency and performance.

Which of the Following Generally Indicates a Positive Change