In 2012,C Co's Receivables Turnover Ratio and Days' Sales in Receivables

question 51

Multiple Choice

In 2012,C Co's receivables turnover ratio and days' sales in receivables was 11.43 times and 31.9 days.In 2012,P Co's receivables turnover ratio and days' sales in receivables was 9.71 times and 37.6 days.Which of the following statements is false?

• A)The higher turnover ratio for C Co hurts their liquidity.
• B)P Co's lower turnover ratio has an inverse relationship to its days' sales tied up in receivables.
• C)P Co's management has done a better job of managing their receivables.
• D)C Co appears to be more profitable than P Co.

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Definitions:

Dismissal

The act of terminating an employee's contract by the employer, often due to redundancy, misconduct, or other workplace issues.

Illegal

Activities or actions that are forbidden by law, regulations, or statutory provisions, thus subject to legal penalties or sanctions.

Neoliberal Market Ideology

An economic philosophy advocating for reduced government intervention, free markets, and an enhanced role for the private sector in economic activities.

Worker's Needs

The essential requirements and conditions that employees seek in their employment, including fair compensation, safe working conditions, and respect for their rights.