Bolster Soda Had an Accounts Receivable Turnover Ratio of 9

question 116

Multiple Choice

Bolster Soda had an accounts receivable turnover ratio of 9.9 this year and 11.0 last year.Castor Soda had a turnover ratio of 9.3 this year and 9.3 last year.This implies:

• A)Castor's receivables turnover ratios were better than Bolster's for both years.
• B)Bolster's receivables turnover ratios were better than Castor's for both years.
• C)Castor has credit policies that need to be tightened.
• D)Castor collected receivables more quickly than Bolster in both years.

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Definitions:

Bank Service Charge

Fees charged by banks for maintaining accounts and providing various banking services.