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Which one of the following statements is NOT true? DSO measures in days, the time the firm takes to convert its receivables intocash. One ratio
Which one of the following statements isNOTtrue?
DSO measures in days, the time the firm takes to convert its receivables intocash.
One ratio that measures the efficiency of a firm's collection policy is days'sales outstanding.
The accounts receivables turnover ratio measures how quickly the firm collectson its credit sales.
The more days that it takes the firm to collect on its receivables, the moreefficient the firm is.
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