Question 16 Coverage ratios, like times interest earned and cash coverage ratio, allow a firm's management to assess how profitable the firm is. a firm's shareholders to assess how well the firm will meet its payments to suppliers. a firm's creditors to assess how well the firm will meet its interest expense payments. a firm's shareholders to assess how much growth there will be in the stock price. D Question 17 Which one of the following statements is FALSE? The accounts receivables turnover ratio measures how quickly the firm collects its credit sales The more days that it takes a firm to collect on its receivables, the more efficient the firm is. Day's sales outstanding is a measure of the time a firm takes to convert its receivables into cash. One ratio that measures the efficiency of a firm's collection policy is day's sales outstanding (DSO)