The time the firm takes to convert its receivables into cash

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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 into cash.

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 collects on its credit sales.

The more days that it takes the firm to collect on its receivables, the more efficient the firm is.

Reference no: EM131296507

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