Saturday, October 10, 2020

A company's ratio of net sales (cash and credit sales) to average accounts receivable can be interpreted as management's ability to:

A company's ratio of net sales (cash and credit sales) to average accounts receivable can be interpreted as management's ability to:


A) Collect cash from all sales to customers.

B) Effectively market its goods and services.

C) Generate profits for investors.

D) Reduce costs of selling goods and services to customers.


Answer: Collect cash from all sales to customers.

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