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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 aiming to improve turnover of accounts receivable, which relates primarily to efficiency. Improving the turnover of accounts receivable means collecting payments from customers more quickly. This is a measure of how effectively the company is managing its receivables and converting them into cash, which directly impacts operational efficiency.
Therefore, the correct answer is (A) Efficiency.