Pinecrest Company Use the Selected Data from Pinecrest Company's Financial Statements to Statements

question 7

Multiple Choice

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.
-Refer to the data for Pinecrest Company.
Competitors in Pinecrest Company's industry have an average accounts receivable turnover of 10.8 times.Pinecrest reported accounts receivable at December 31, 2016 of $42,000 and has normal credit terms requiring payment within 30 days.Pinecrest's accounts receivable turnover for 2016 is:

• A)probably indicating that the company probably has stricter credit terms and policies than the industry as a whole, which may repel potential buyers.
• B)of no value to bankers and other creditors.
• C)less efficient in its collection policies in 2016 than the industry as a whole.
• D)less than the industry, which means that its customers are paying on their accounts in a more timely manner than are customers reflected by the industry average.

---

Definitions:

Beck

Refers to Aaron T. Beck, a psychiatrist who is considered the father of cognitive therapy, specifically in relation to his work on depression.

Mood Disorder

A category of mental health disorders that primarily affect a person's emotional state, causing significant disruptions in daily life, including depression and bipolar disorders.

Postpartum Onset

Refers to the onset of psychiatric disorders during the postpartum period, typically within the first four weeks after giving birth, but can extend up to one year.

Seasonal Affective Disorder

a type of depression that occurs at a specific time of year, usually in the winter months, related to changes in daylight.