LO 9.3 Which of the following best represents a positive product of a lower number of days’ sales in receivables ratio?Choose one answer from the options below.A. collection of receivables is quick, and cash can be used for other business expendituresB. collection of receivables is slow, keeping cash secured to receivablesC. credit extension is lenientD. the lender only lends to the top 10% of potential creditorsBackNext

Which of the following transactions will improve the quick ratio?a.Issue of new shares for cashb.Sale of goods for cashc.Sale of goods on creditd.All of these

Which of the following transactions will improve the Current Ratio :a.Credit purchase of Goodsb.Cash Collected from Trade Receivablesc.Payment to Trade Payablesd.Purchase of goods for cash

Select Any One Of the Following Options: From the following data given for the period 2017, 2018 and 2019 of the organisation, choose the most appropriate conclusion. Receivable days are 40 days, 55 days and 75 days respectively. Days of holding inventory are 80 days, 100 days and 154 days respectively.  The Efficiency in terms of Receivables in the organisation and liquidity of inventory both are diluting. The Efficiency in terms of Receivables in the organisation and liquidity of inventory both are improving. The Efficiency in terms of Receivables in the organisation is improving but liquidity of inventory is diluting. The Efficiency in terms of Receivables in the organisation is diluting but liquidity of inventory is improving.

If cash is collected at the sale: Group of answer choices the operating cycle will be shorter than if sold on credit the account payable will be decreased as a result of the sale the operating cycle will be longer than if sold on credit the account receivable will be increased as a result of the sale

Interpreting Activity RatiosDetermine which of the following statement is true? (Note: More than one option may be correct.)For company A, accounts receivable of $0.5 million represents 45 days of sales revenue outstanding Both the company pay their supplier 300 days after deliveryCompany B’s days inventory outstanding (DIO) is greater than company A’s DIOFor company B, accounts receivable of $2 million represents 45 days of sales outstanding