When Comparing One Company to Another, What Kind of Information

question 13

Multiple Choice

When comparing one company to another, what kind of information does the accounts receivable turnover provide?

• A)How profitable each company is based on the sale of its products
• B)How effective each company is at collecting cash from its credit customers
• C)How well each company manages the financing of its assets
• D)How much profit is generated by a share of each company