Axle Co'S Accounts Receivable Turnover Was 9

question 64

Multiple Choice

Axle Co.'s accounts receivable turnover was 9.9 for this year and 11.0 for last year.Betterman's turnover was 9.3 for this year and 9.3 for last year.These results imply that:

• A)Betterman has the better turnover for both years.
• B)Axle has the better turnover for both years.
• C)Betterman's turnover is improving.
• D)Axle's credit policies are too loose.
• E)Betterman is collecting its receivables more quickly than Axle in both years.

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Definitions:

Dividend Growth Model

A valuation method used to estimate the worth of a stock by assuming that dividends grow at a constant rate indefinitely.

Market Price

The current value at which an asset or service can be bought or sold in the open market.

Declared Dividends

The announcement by a company's board of directors of the payment of a dividend to shareholders at a future date.

Liabilities

Financial obligations or debts owed by a person, company, or entity to others, requiring the outflow of resources to settle.