Which of the following ratios would be of primary importance to a manager in evaluating the success of a computerized collection process?
A)Accounts receivable turnover
B)Account payable turnover
C)Quick ratio
D)Return of equity

Question

Quizplus · Accepted Answer

Accounts receivable turnover would be the most important ratio to a manager in evaluating the success of a computerized collection process as it measures the efficiency of collecting payments from customers. A high accounts receivable turnover ratio indicates that customers are paying their debts quickly and efficiently, which would be a success for the computerized collection process. The other ratios (account payable turnover, quick ratio, and return on equity) are not directly related to the collection process and would not be as important in evaluating its success.

Which of the Following Ratios Would Be of Primary Importance