What does the days\' sales in receivables ratio measure for a firm? A The number

Question

What does the days' sales in receivables ratio measure for a firm? A The number of days it takes to generate dollar sales equal to the outstanding accounts receivable balance. OB. The number of days it would take to collect outstanding receivables if no new ones are created. OC.The number of days it takes for a firm to pay its bills assuming not new payables are created. D. The number of times during the year a firm collects and re-loans its receivables. OE. The number of days it takes before the firms working capital becomes negative.

Explanation / Answer

B. The number of days it would take to collect outstanding receivables if no new ones are created.

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