The number of days' sales uncollected:
A)Is used to evaluate the liquidity of receivables.
B)Is calculated by multiplying accounts receivable by sales.
C)Measures a company's ability to pay its bills on time.
D)Measures a company's debt to income.
E)Is calculated by dividing sales by accounts receivable.

Question

Quizplus · Accepted Answer

The number of days' sales uncollected is a metric used to evaluate the liquidity of receivables, indicating how quickly a company can convert its receivables into cash.

The Number of Days' Sales Uncollected