Use the Information That Follows Taken from Campbell Company's Financial

question 59

Multiple Choice

Use the information that follows taken from Campbell Company's financial statements for the years ending December 31, 2010 and 2009 to answer problems 45 through 48.

-Calculate Campbell's inventory turnover ratio and accounts receivable turnover ratio for the year ended 2010. Further, assume that in Campbell's industry, the industry average inventory turnover ratio is 12 and the industry average receivables turnover ratio is 14.

• A) Campbell's inventory turnover ratio and accounts receivable turnover ratios are better than average for Campbell's industry.
• B) Campbell's inventory turnover ratio and accounts receivable turnover ratios are worse than average for Campbell's industry.
• C) Campbell's inventory turnover ratio is better but the accounts receivable turnover ratio is worse than average for Campbell's industry.
• D) Campbell's inventory turnover ratio is worse and accounts receivable turnover ratio is better than average for Campbell's industry.

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Definitions:

Introspective

The practice of examining one's own thoughts, feelings, and sensations in order to gain insight; a reflective looking into oneself.

Psychological Research

The scientific study of the mind and behavior, employing systematic methods to explore and understand psychological phenomena.

Experimental

Pertaining to a research methodology that involves manipulating one variable to determine if changes in one variable cause changes in another variable, within a controlled environment.

Humanistic Psychology

A psychological perspective emphasizing the study of the whole person and the uniqueness of each individual's experience.