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.

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Definitions:

Depth Cues

Visual or auditory information that helps to determine the distance between the observer and objects in the environment.

Redundancy

The inclusion of extra components or information that are not necessary for functioning, often to ensure reliability or convey additional confirmation.

Geometry

A branch of mathematics concerned with the properties and relations of points, lines, surfaces, solids, and higher dimensional analogs.

Motion Parallax

A depth cue that arises from the relative movement of objects as the observer moves, allowing the brain to gauge distance.