Conceptually, What Does the Days' Sales in Receivables Ratio Measure

Multiple Choice

Conceptually, what does the days' sales in receivables ratio measure for a firm?

A) The number of days it takes to generate dollar sales equal to the outstanding accounts receivable balance.
B) The number of days it takes on average for customers to pay their bills.
C) The number of days it takes for a firm to pay its bills assuming no new payables are created.
D) The number of times during the year a firm collects and relends its receivables.
E) The number of days it takes before the firm's working capital becomes negative.