Compaq's accounts receivable turnover rate was 5.7 for this year and 5.4 for last year. Dell's turnover rate was 6.8 for this year and 7 for last year. This means that
A) Dell has the better turnover rate for both years.
B) Compaq has the better turnover rate for both years.
C) Dell's turnover rate is improving.
D) Compaq's turnover rate is improving.
E) Dell has the better turnover rate for both years and Compaq's turnover rate is improving.

Question

Quizplus · Accepted Answer

Dell has higher turnover rates for both years compared to Compaq (6.8 vs 5.7 for this year and 7 vs 5.4 for last year), indicating better performance in collecting receivables. Compaq's turnover rate increased from 5.4 to 5.7, showing improvement.

Compaq's Accounts Receivable Turnover Rate Was 5