XYZ CorpHas Improved Its Average Collection Period from 55 to 40

question 120

Multiple Choice

XYZ Corp.has improved its average collection period from 55 to 40 days.Which one of XYZ are other ratios may appear worse as a result of the improved receivables collection?

• A)Inventory turnover
• B)Quick ratio
• C)Net profit margin
• D)Return on equity

---

Definitions:

Nuts

Edible seeds encased in hard shells, often consumed as snacks or used as ingredients in cooking.

Utility Function

An equation that describes a consumer's preference for a set of goods and services, relating each bundle of goods to a level of utility.

Berries

Small, pulpy, and often edible fruits that are typically juicy, rounded, and brightly colored.

Nuts

Hard-shelled seeds of certain plants that are often edible and rich in nutrients, or a slang term to describe someone who is crazy or eccentric.