The Following Selected Information Is from Acme's Annual Report for the Years

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.

Correct Answer:

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