Which one of the following statements is correct if a firm has a receivables tur

Question

Which one of the following statements is correct if a firm has a receivables turnover measure of 15 red 41.0 Select one: tion O a. It takes a firm 24.3 days to pay its creditors O b. It takes a firm 24.3 days to sell ts inventory and collect the payment from the sale c. It takes a firm 15 days to collect payment from its customers o d. The firm has fifteen times more in accounts receivable than it does in cash. O e. The firm has an average collection period of 24.3 days. Stakeholder theory suggests that employees, customers, suppliers, and various levels of government all have financial interests in the firm. of 1.0 Select one stion O True False

Explanation / Answer

This means that the firm collects its receivables 15 times on average per year.
This also means that an average collection period is 365/15 = 24.3 days. (Option e)

4- True. This is factual that stakeholder theory states this.

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