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

Question

Quizplus · Accepted Answer

It is better to have a higher receivables turnover ratio (which means faster the collection of receivables. )Bolster's receivables turnover ratios were better than Castor's for both years.

Bolster Soda Had an Accounts Receivable Turnover Ratio of 9