Which one of the following statements is correct if a firm has a receivables turnover of 10? It takes the firm an average of 36.5 days to sell its items. The firm has ten times more in accounts receivable than it does in cash. The firm collects its credit sales in an average of 36.5 days. It takes the firm 10 days to collect payment from its customers.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which one of the following statements is correct if a firm has a receivables turnover of 10?


It takes the firm an average of 36.5 days to sell its items.
The firm has ten times more in accounts receivable than it does in cash.
The firm collects its credit sales in an average of 36.5 days.
It takes the firm 10 days to collect payment from its customers.
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