Question

AR% KPI includes money at 30/60/90+ days?

A) True
B) False

Answer 1

The AR% KPI does not include money at 30/60/90+ days. It measures the percentage of outstanding receivables compared to total sales.

Step-by-step explanation:

The statement in the question is False. The AR% KPI (Accounts Receivable Percentage Key Performance Indicator) does not include money at 30/60/90+ days. The AR% KPI is a financial metric that measures the percentage of outstanding receivables compared to total sales.

For example, if a company has $10,000 in outstanding receivables and $100,000 in total sales, the AR% would be 10%.

The 30/60/90+ days measurement, on the other hand, is used to analyze the aging of accounts receivable and categorize them based on how long they have been outstanding.