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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
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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