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Which of the following statements regarding accounts receivable metric-based analysis is incorrect? Only sales on account should be used in the accounts receivable metric-based analysis
Which of the following statements regarding accounts receivable metric-based analysis is incorrect? Only sales on account should be used in the accounts receivable metric-based analysis calculations. There are two ways to calculate the days' sales in receivables metric. The accounts receivable turnover ratio indicates how many times per year accounts receivable is converted to cash. The days' sales in receivables can be directly compared to the credit period extended to customers. Average accounts receivable is calculated by dividing the ending accounts receivable balance by two
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