Dividing Accounts receivable,net by Net sales and multiplying the result by 365 is the:
A)Profit margin.
B)Days' sales uncollected.
C)Accounts receivable turnover ratio.
D)Average accounts receivable ratio.
E)Current ratio.

Question

Quizplus · Accepted Answer

Dividing Accounts receivable, net by Net sales and multiplying the result by 365 gives the number of days' sales that are still to be collected. This indicates the efficiency of the company in collecting sales from customers. It is known as the Days' Sales Uncollected ratio. Therefore, option B is the correct answer.

Dividing Accounts Receivable,net by Net Sales and Multiplying the Result