Working Capital Management MCQ Multiple Choice Questions - Page 4 for Practice

Correct Answer is: Net credit sales / Average accounts receivable

Correct Answer is: How efficiently a company collects its accounts receivable

Correct Answer is: 365 days / Accounts receivable turnover ratio

Correct Answer is: The average number of days it takes a company to collect its accounts receivable

Correct Answer is: Cost of goods sold / Average accounts payable

Correct Answer is: How efficiently a company pays its suppliers

Correct Answer is: 365 days / Accounts payable turnover ratio

Correct Answer is: The average number of days it takes a company to pay its suppliers

Correct Answer is: Days' sales in inventory + Days' sales outstanding - Days' payables outstanding

Correct Answer is: The length of time it takes a company to convert its investments in inventory and accounts receivable into cash