The trade receivables collection period ratio measures: a. The percentage of sales made on credit. b. The proportion of cash sales over total revenue. c. The time lag between sales and payment from customers. d. The time it takes to pay suppliers.
Added by Rebecca M.
Step 1
** Show more…
Show all steps
Your feedback will help us improve your experience
Puneet Prajapati and 69 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
What information can best be elicited from a receivable ratio? A. company performance with current debt collection B. credit extension effect on cash sales C. likelihood of future customer bankruptcy filings D. an increase in future credit sales to current customers
Accounting for Receivables
Determine the Efficiency of Receivables Management Using Financial Ratios
Question 2: Which of the following measures the number of days accounts receivable are held before the firm collects cash from the sale? A) accounts receivable turnover b) average collection period C) average payment period D) accounts payable turnover
Adi S.
Which of the following phrases best completes this sentence? If a company's collection period (the period between making a sale and collecting cash from that sale) increases...a) the company is having trouble moving its inventory. b) the cash flow timing difference increases. c) the company's borrowing needs will decrease. d) the payment period will also increase.
Akash M.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD