Plumeria Inc has recently calculated the accounts receivable turnover for the current year to be 15. In prior years, the same ratio was always higher. Which of the following statements would be the best interpretation for the reason for the ratio's change?
A) The company had less cash sales in the current year than in prior years.
B) The company had more sales in the current year than in prior years.
C) The company had fewer accounts receivables in the current year than in prior years.
D) The company took longer to collect on their accounts receivables in the current year than in prior years.
D
You might also like to view...
Cash inflows and outflows are easier to manipulate than earnings
Indicate whether the statement is true or false
The use of a cash register is an example of a physical control
Indicate whether the statement is true or false
List the four common mistakes that salespeople make which prevents them from making successful sales calls.
What will be an ideal response?
Discontinuing a product or segment is a huge decision that must be carefully analyzed. Which of the following would be a valid reason not to discontinue an operation?
A) when the losses are minimal B) when the variable costs are less than revenues C) when the variable costs are more than revenues D) when fixed costs are more than revenues