Posted: April 2nd, 2016
Which of the following best describes days in account receivable ?
Which of the following best describes days in account receivable ?
A) A profitability ratio that measures how quickly an organization generates revenue
B) A liquidity ratio that estimates how quickly an organization converts receivables to cash
C) A liquidity ratio that measures how long it takes an organization to pay bills
D) A profitability ratio that evaluates credit and collection policies.
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