When evaluating the days' sales uncollected ratio, generally the higher the receivables balance, the better the ratio.

Name: When evaluating the days' sales uncollected ratio, generally the higher the receivables balance, the better the ratio.
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Quizplus · Accepted Answer

The higher the receivables balance, the longer it may take to collect payment from customers, which could result in a higher days' sales uncollected ratio. Therefore, a lower receivables balance would typically result in a better ratio.

When Evaluating the Days' Sales Uncollected Ratio, Generally the Higher