A Company Wishes to Assess Certain Financial Performance Measures to Assess

Multiple Choice

A company wishes to assess certain financial performance measures to assess their operations for the current year. Management believes this will be an effective way to assess certain aspects as the financial measures are both objective and measurable. If the organization would like to evaluate how effective the organization is at collecting receivables, then which of the following performance measures should they use?

A) Accounts receivable turnover
B) Net income growth
C) Gross margin
D) Operating cash flow