Company a has a higher days sales outstanding ratio than, Ask an Expert

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Company A has a higher day's sales outstanding ratio than Company B. Therefore,

A. Company A must be collecting its accounts receivable faster than Company B, on average

B. Other things being equal, Company B has a cash flow advantage over Company A

C. Company A has a higher percentage of cash to credit sales than Company B

D. Company A sells more on credit than Company B

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91264424

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