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.

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Definitions:

Paper Trail

A series of documents or records that provide evidence of a person's or organization's transactions, actions, or history.

Expected Returns

The anticipated amount of profit or loss an investment is predicted to generate based on historical or projected performance.

Securities

Securities that signify ownership in a corporation that's publicly traded (such as shares), a debt obligation to a government entity or a company (through bonds), or entitlements to ownership through options.

Prospectus

A formal document that companies use to describe the securities they are offering for participants and investors.