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The financial manager of a furniture company has determined that improving turnover of accounts receivable will be the goal for the next financial year - HSC - SSCE Business Studies - Question 5 - 2006 - Paper 1
Question 5
The financial manager of a furniture company has determined that improving turnover of accounts receivable will be the goal for the next financial year. Which objec... show full transcript
Worked Solution & Example Answer:The financial manager of a furniture company has determined that improving turnover of accounts receivable will be the goal for the next financial year - HSC - SSCE Business Studies - Question 5 - 2006 - Paper 1
Step 1
Which objective is the financial manager aiming to improve?
Answer
The financial manager is focusing on improving the turnover of accounts receivable, which directly pertains to the efficiency of collections and management of credit sales. Therefore, the objective aimed to improve is:
(A) Efficiency
Improving accounts receivable turnover enhances the efficiency of the company in converting credit sales into cash, which leads to better cash flow and operational effectiveness.