A New Computer System Reduced the Time for Printing the Payroll

question 11

Multiple Choice

A new computer system reduced the time for printing the payroll from 47 minutes to 27 minutes.
a) What is the amount of the decrease?
b) What percent decrease does this amount represent? Round your answer to the nearest percent.

• A) a) 30 minutes; b) 85 \(\%\)
• B) a) 20 minutes; b) 43 \(\%\)
• C) a) 20 minutes; b) 85 \(\%\)
• D) a) 30 minutes; b) 43 \(\%\)
• E) a) 30 minutes; b) 4 \(\%\)

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Definitions:

Operating Activity

Activities that constitute the core business functions, generating revenue and incurring expenses through day-to-day operations.

Accounts Receivable

The total finances that are due to a company from its customers for goods or services that have already been delivered or utilized, but payment has not been received.

Accounts Receivable Turnover

A financial ratio indicating how efficiently a company collects cash from credit sales by measuring the number of times receivables are collected over a period.

Inventory Turnover

An index that reveals the number of times a business's stock is sold and restocked during a specific period, showcasing how efficiently inventory is managed.