Pepsi Had an Accounts Receivable Turnover Ratio of 9

question 54

Multiple Choice

Pepsi had an accounts receivable turnover ratio of 9.9 this year and 11.0 last year. Coke had a turnover ratio of 9.3 this year and 9.3 last year. This implies

• A) Coke had a better receivables turnover for both years.
• B) Pepsi had a better receivables turnover for both years.
• C) Coke has credit policies that need to be tightened.
• D) Coke collected receivables more quickly than Pepsi in both years.

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Definitions:

Biological Drives

Innate impulses in living organisms that lead to certain behaviors essential for survival.

Active Constructors

Refers to individuals or agents who actively engage in building or creating understanding, knowledge, or physical structures.

Development

The process of growth or progress, often referring to economic, social, psychological, or biological advancements.

Piaget

Jean Piaget, a Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development, which explains how children construct a mental model of the world.