Question: 1
(Choose 1 answer)
Which one of the following statements is NOT true?
A. The accounts receivable turnover ratio measures how quickly the firm collects its credit sales.
B. One ratio that measures the efficiency of a firm's collection policy is days' sales outstanding.
C. The more days that it takes a firm to collect its receivables, the more efficient the firm is.
D. Days' sales outstanding measures how many days a firm takes to convert its receivables into cash.
