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.

Question

Ashley Speck · Accepted Answer

Final Answer : B, Explanation :  Axle Co. had a higher accounts receivable turnover ratio than Betterman in the previous year (11.0 vs 9.3) and still maintains a higher ratio this year (9.9 vs 9.3), indicating more efficient collection of receivables.

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