Question

which of the following ratios would you prefer to decline over time? group of answer choices days sales outstanding inventory turnover fixed asset turnover total asset turnover

Answer 1

Answer: Day sales outstanding.

Explanation: The days sales outstanding ratio is the ratio of recovering sales from the company's debtors, and the company would always strive for a lower days sales outstanding. Lower days sales outstanding indicate that the corporation requires less time to collect the outstanding money from the market, indicating a higher collection capacity.