Question
East Company offers net 30 credit terms to customers that purchase on account. East Company's accounts receivable turnover was 9.09 times and the days' sales
East Company offers "net 30" credit terms to customers that purchase on account. East Company's accounts receivable turnover was 9.09 times and the days' sales in receivables 40 days for 2020. The industry averages for the same year were 8.69 times and 42 days respectively.
This indicates that
Select one:
a. East Company's collections were longer than 30 days and shorter than other companies operating in the same industry.
b. East Company's collections were shorter than 30 days and shorter that other companies operating in the same industry.
c. East Company's collections were longer than 30 days and longer than other companies operating in the same industry.
d. East Company's collections were shorter than 30 days and longer that other companies operating in the same industry.
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