Column 1 Column 2 Column 3 Owner's Capital

Which one of the following statements is correct if a firm has a receivables turnover measure of 10?

A. It takes a firm 10 days to collect payment from its customers. B. It takes a firm 36.5 days to sell its inventory and collect the payment from the sale. C. It takes a firm 36.5 days to pay its creditors. D. The firm has an average collection period of 36.5 days. E. The firm has ten times more in accounts receivable than it does in cash.

Financial risk refers to the uncertainty of loss because of adverse price movements, changing interest rates, and similar exposures.

a. true b. false