Karla, an Accounts Receivable Manager, Receives a Report from a Team

question 37

Multiple Choice

Karla, an accounts receivable manager, receives a report from a team that she asked to investigate the latest accounts receivable techniques and software. She is disappointed when she reads it because the team has not done enough research and the report's recommendations are confusing and not supported by details or explanations. She considers responding with the following comments, but then decides that only one would be constructive. Which comment is the best example of constructive criticism?

• A)You should always pay more attention to detail.
• B)You and your team did a great job.Congratulations.
• C)I don't understand a thing about this report.Learn to write better.
• D)Next time, we'll need to explain the effects better before we provide recommendations.

---

Definitions:

Imputed Interest Rate

The estimated rate of interest, often applied in situations where no actual interest rate is specified in a financial transaction.

Required Rate of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.

Invested Capital

Represents the total amount of money invested into a business by its owners and creditors, used for ongoing business operations.

Net Assets

The total assets minus total liabilities of an entity, representing its net value or equity.