Which of the Following Is TRUE of Days' Sales in Receivables

Multiple Choice

Which of the following is TRUE of days' sales in receivables?

A) Days' sales in receivables measures how many days it takes to order and receive inventory.
B) Days' sales in receivables measures how frequently during the year the accounts receivable are collected.
C) Days' sales in receivables measures how many days it takes to sell inventory.
D) Days' sales in receivables measures how slowly the inventory is depreciated.