Pepsi had an accounts receivable turnover ratio of 9.9 this year and 11.0 last year. Coke had a turnover ratio of 9.3 this year and 9.3 last year. This implies
A) Coke had a better receivables turnover for both years.
B) Pepsi had a better receivables turnover for both years.
C) Coke has credit policies that need to be tightened.
D) Coke collected receivables more quickly than Pepsi in both years.

Question

Quizplus · Accepted Answer

Pepsi had a higher accounts receivable turnover ratio than Coke in both years, indicating that Pepsi collected its receivables more quickly than Coke.

Pepsi Had an Accounts Receivable Turnover Ratio of 9