A company a has a higher days receivables outstanding ratio


A company A has a higher days receivables outstanding ratio than company B therefore,

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

B. Company A must have higher sales than company B.

C. A may have a more lenient credit policy than company B.

D. Company A must be managing its accounts receivable better than company B.    

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Financial Management: A company a has a higher days receivables outstanding ratio
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