Multiple Choice
Which one of the following statements is correct if a firm has an accounts receivable turnover measure of 10?
A) It takes the firm 36.5 days to pay its creditors.
B) It takes the firm 36.5 days to sell its inventory and collect payment from the sale.
C) It take the firm 36.5 days to collect payment for a sale.
D) The firm has ten times more in accounts receivable than it does in cash.
E) It takes an average of ten days to collect payment from the firm's customers.
Correct Answer:
Verified
Correct Answer:
Verified
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