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Company A has a shorter Average Collection Period than Company B using the formula 365 / (Credit Sales / Average AR Balance). Which of the

Company A has a shorter Average Collection Period than Company B using the formula 365 / (Credit Sales / Average AR Balance). Which of the following statements is true regarding these two companies?

Company A has a lower percentage of credit sales than Company B.

Company A is more efficient in collecting receivables from customers than Company B.

Company A is more efficient in generating revenue than Company B.

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