All of the Following Are True of the Number of Days

Multiple Choice

All of the following are true of the number of days' sales uncollected ratio except:

A) Can be used for comparisons to other companies in the same industry.
B) Is most effective in evaluating the cash sales of a company.
C) Can be used for comparisons between current and prior periods.
D) Reflects the liquidity of receivables.
E) Measures how much time is likely to pass before the current amount of accounts receivable is received in cash.