Company a Has a Higher Days Sales Outstanding Ratio Than

question 146

Multiple Choice

Company A has a higher days sales outstanding ratio than Company B.Therefore

• A)Company A sells more on credit than Company B.
• B)Company A has a higher percentage of cash to credit sales than Company B.
• C)Company A must be collecting its accounts receivable faster than Company B,on average.
• D)Other things being equal,Company B has a cash flow advantage over Company A.

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Definitions:

Complementary

Refers to things that combine in such a way as to enhance or emphasize each other's qualities, or the use of alternative therapies alongside conventional treatments in medicine.

Proximal

Referring to something that is close in distance, time, or relationship.

Rewarding

Describes an experience, activity, or behavior that provides satisfaction, enjoyment, or a sense of achievement.

Reciprocal

Pertaining to a mutual relationship or action in which two entities engage in an exchange or similar actions towards each other.