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Which of the following is not true with regard to the Days to Sell Average Inventory and Days to Collect Accounts Receivable measures we discussed?
Which of the following is not true with regard to the Days to Sell Average Inventory and Days to Collect Accounts Receivable measures we discussed? Muitiple chove If a company is more effective at collecting on customer accounts, its digs to colicct measuate will be lower. Theses measures can be added together to approximate a companys operating cycle. Companies ideaby want both of these measures to be as high as possible. If a company has a pobcy of keeping very large amounts of inventory on hond, its doys to sell measure will be higher
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