Iffy Company and Benchmark Company operate in the same industry. Benchmark Company is widely viewed as managing its business very well and is the standard to which other companies compare themselves. Here are accounts receivable-related financial ratio values for Iffy and Benchmark for Year 1 and Year 2:

IFFY Year 1 Year 2

Receivables Turnover 12 10

Average Collection Period 30.4 36.5

BENCHMARK Year 1 Year 2

Receivables Turnover 15 16

Average Collection Period 24.3 22.8

Which ONE of the following statements is true?

• Iffys accounts receivable management practices became less efficient in Year 2 compared to Year 1.
• Benchmarks accounts receivable management practices became less efficient in Year 2 compared to Year 1.
• Iffys accounts receivable management practices are more efficient than are Benchmarks in both Year 1 and Year 2.
• Iffys accounts receivable management practices became more efficient in Year 2 compared to Year 1.