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:

Specialized Feeding

The adoption of unique feeding strategies and mechanisms by certain organisms to suit their environmental conditions and nutritional requirements.

Deliberate Extermination

A planned and intentional act of completely destroying or eliminating a group or species.

Overhunting

describes the excessive hunting of animal species to the point where it leads to a significant reduction in their population, potentially leading to extinction.

Biotic Pollution

Introduction of a foreign species into an area where it is not native.