Compaq's Accounts Receivable Turnover Rate Was 5

question 49

Multiple Choice

Compaq's accounts receivable turnover rate was 5.7 for this year and 5.4 for last year. Dell's turnover rate was 6.8 for this year and 7 for last year. This means that

• A) Dell has the better turnover rate for both years.
• B) Compaq has the better turnover rate for both years.
• C) Dell's turnover rate is improving.
• D) Compaq's turnover rate is improving.
• E) Dell has the better turnover rate for both years and Compaq's turnover rate is improving.

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Definitions:

Oppression

The exercise of authority or power in a burdensome, cruel, or unjust manner.

Novation

is the process of substituting a new obligation or contract for an old one, with consent from all parties involved.

Right Of Appraisal

See dissenter’s rights.

Reverse Share Split

A corporate action in which a company reduces the total number of its outstanding shares, typically to increase the per-share price.