Axle Co'S Accounts Receivable Turnover Was 9

question 129

Multiple Choice

Axle Co.'s accounts receivable turnover was 9.9 for this year and 11.0 for last year. Betterman's turnover was 9.3 for this year and 9.3 for last year. These results imply that:

• A) Axle's credit policies are too loose.
• B) Betterman's turnover is improving.
• C) Axle has the better turnover for both years.
• D) Betterman is collecting its receivables more quickly than Axle in both years.
• E) Betterman has the better turnover for both years.

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Definitions:

Death Instinct

In psychoanalytic theory, the drive towards death and self-destruction, opposing the life instincts.

Psychoanalysis

A therapeutic approach and theory of personality development that emphasizes unconscious motives and conflicts, originated by Sigmund Freud.

Childhood Trauma

Distressing experiences that occur during childhood, which can have long-lasting emotional and psychological effects.

Repression

In psychoanalytic theory, a mechanism of defense by means of which thoughts, impulses, or memories that give rise to anxiety are pushed out of consciousness.