Which one of the following statements is NOT true?

Which one of the following statements is NOT true?

a)One ratio that measures the efficiency of a firm's collection policy is days' sales outstanding.

b)The more days that it takes the firm to collect on its receivables, the more efficient the firm is.

c)DSO measures in days, the time the firm takes to convert its receivables into cash.

d)The accounts receivables turnover ratio measures how quickly the firm collects on its credit sales.

Anonymous User
Anonymous User
Asked Sep 04, 2012
B. Taking longer to collect your money doesn't increase efficiency.
Rob
Answered Sep 04, 2012
The more days that it takes the firm to collect on its receivables, the more efficient the firm is.
proffcliff
Answered Mar 03, 2018

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