All of the following are true of the number of days' sales uncollected ratio except:
A. Reflects the liquidity of receivables.
B. Measures how much time is likely to pass before the current amount of accounts receivable is received in cash.
C. Can be used for comparisons to other companies in the same industry.
D. Can be used for comparisons between current and prior periods.
E. Is most effective in evaluating the cash sales of a company.
Answer: E
You might also like to view...
In a short essay, list four of the six measures that can be used to protect businesses from cyberterrorism.
What will be an ideal response?
What are the four steps involved in making capacity decisions?
What will be an ideal response?
A product is defined as a business product rather than a consumer good on the basis of its:
A. intended use B. physical characteristics C. price D. distribution method E. tangible attributes
In the Advanced Battery Technologies case, the opinion of the court:
A. Held the auditors legally liable because they failed to exercise due care and to demonstrate professional skepticism B. Held the auditors were not legally liable because they met all professional standards C. Held the auditors not legally liable because the plaintiff could not plead with particularity that the audit work was so deficient as to amount to no audit at all D. Held the auditors legally liable because they failed to gather sufficient, competent evidential matter to warrant the expression of an opinion