Which of the Following Indicates an Improvement in the Management

question 33

Multiple Choice

Which of the following indicates an improvement in the management of accounts receivable?

• A) An increase in the average collection time for accounts receivable.
• B) A change in the average collection period from 34 days to 39 days.
• C) An extension of the time taken to collect debts to beyond the allowed credit period.
• D) A change in the number of times debtors are turned over per year from 8.32 times to 10.85 times.

Appreciate the role of financial ratios in evaluating a company's liquidity, profitability, and solvency.

Recognize how financial ratios can be used for benchmarking against industry averages and evaluating competitive position.

Identify the importance of considering financing sources in analyzing financial health and performance.

Understand the impacts of unusual items and changes in accounting principles on financial statements and ratios.

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Definitions:

Social Change

The transformation over time of cultural norms and social structures, which can result from internal processes or external pressures and significantly affects how societies function.

Functionalism

A theoretical perspective in sociology and anthropology that interprets society as a structure with interrelated parts designed to meet the biopsychosocial needs of individuals in that society.

Conflict Theory

A theoretical framework in sociology that emphasizes the social, political, or material inequality of a social group, critiquing the broad socio-political system.

Symbolic Interactionism

A sociological perspective that focuses on the symbolic meanings people develop and rely upon in the process of social interaction.