Question

which of the following short term liquidity ratios measure how frequently a company collects its accounts? A- Days sales...

which of the following short term liquidity ratios measure how frequently a company collects its accounts?

A- Days sales uncollected
B- Days sales inventory
C- Accounts receivable turnover
D- Acid test ratio

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Answer #1
Days sales uncollected and Accounts Receivable Turnover

Accounts Receivable Turnover = Credit sales/Average accounts receivables

Days sales uncollected = 365/Accounts Receivable Turnover

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