Question

The financial ratio that indicates how efficiently the managers of the organization are collecting the revenue due to the organization from the sale of its products or services is the _____________ ratio.

Answer 1

The financial ratio that indicates how efficiently the managers of the organization are collecting the revenue due to the organization from the sale of its products or services is the: Days outstanding ratio

Step-by-step explanation:

The days outstanding ratio is the calculation employed to discover the accounts receivable. However, instead of doing it in money it does it in the average number of sales per day. It is also calculated per month and it might reflect a company with low performance of reuniting its payments. It is also a good way to understand the performance of the business and figure out if there is a need to improve the results.

Answer 2

It is the Days sales outstanding ratio or the DSO ration. It can be computed to estimate the firms' average account receivable. It illustrates on how the firm's receivable will be managed. It is usually determine on an annual, monthly and quarterly basis.