The Following Selected Information Is from Acme's Annual Report for the Years

question 14

Multiple Choice

The following selected information is from Acme's annual report for the years ended December 31:

-Refer to the Acme annual report above.Which of the following statements is TRUE about the accounts receivable turnover ratios for 2011 and 2012?

• A)The ratio is higher in 2012.This means management is doing a better job of collecting accounts receivable in 2012.
• B)The ratio is higher in 2012.This means management is doing a worse job of collecting accounts receivable in 2012.
• C)The ratio is lower in 2012.This means management is doing a better job of collecting accounts receivable in 2012.
• D)The ratio is lower in 2012.This means management is doing a worse job of collecting accounts receivable in 2012.

Analyze the use of target profit pricing in achieving specific financial objectives.

Understand various pricing strategies used by businesses.

Identify the impacts of competitive factors on pricing decisions.

Distinguish between cost-oriented, demand-oriented, and competition-oriented pricing approaches.

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Definitions:

Public

The general population or community at large, often in relation to matters of public interest or public spaces.

Personal Guarantee

A commitment by an individual to assume responsibility for the financial obligations of another party, typically in the context of a loan or lease.

Separate Legal Entity

A legal entity, such as a corporation, that is legally distinct from its owners, allowing it to own property, incur debts, and be sued independently.

Legal Fiction

A fact assumed or created by courts for legal reasons, especially one that is contrary to the actual fact, but is used to enable a legal decision.