The days' sales uncollected ratio measures the liquidity of accounts receivable.

Name: The days' sales uncollected ratio measures the liquidity of accounts receivable.
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Question

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The days' sales uncollected ratio is a liquidity ratio that measures how many days it takes for a company to collect payment on its accounts receivable. Therefore, it is a measure of the efficiency of the company's collections process and its ability to convert receivables into cash.

The Days' Sales Uncollected Ratio Measures the Liquidity of Accounts