Question

Identify the statement below that describes what the Days' sales uncollected ratio assesses.

Answer 1

The statement which describes what the Days' sales uncollected ratio assesses how to measure how quickly a company can convert its accounts receivables into cash.

What is Sales uncollected ratio?

This helps measure the days the company will receive cash and is an important ratio for the company's investors and creditors.

This measures how fast a company will receive cash payment for its goods and services.

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