$1$ pts

Question $27$

Which one of the following statements is correct if a firm has a receivables turnover measure of $10?$ Use $365$ days.

$$ It takes a firm $10$ days to collect payment from its customers.

It takes a firm $36\mathrm{.}5$ days to sell its inventory and collect the payment from the sale.

It takes a firm $36\mathrm{.}5$ days to pay its creditors.

The firm has an average collection period of $36\mathrm{.}5$ days.

$$ The firm has ten times more in accounts receivable than it does in cash.