Companies a and B Both Report Net Income Growing at 12

question 99

Multiple Choice

Companies A and B both report net income growing at 12% per year.Company A has a receivables turnover ratio of 5.6,which is smaller than its previous year.Company B has a receivables turnover ratio of 11.3,which is higher than its previous year.All other things equal:

• A)Company A appears to be better managed.
• B)Company A will have the lower days-to-collect measure.
• C)Company B appears to be better managed.
• D)Company B's days-to-collect measure is rising.

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Definitions:

Matriarchy

A social system or form of governance where power is held predominantly by women, often through lineage.

Patriarchy

A social system in which men hold primary power and predominate in roles of political leadership, moral authority, and control of property.

Egalitarian Society

A society where all members are considered equal, having the same rights and opportunities.

Bureaucracy

A system of administration characterized by strict policies, procedures, and hierarchy intended to ensure efficiency and effectiveness in large organizations.