n analyst is comparing two companies in the same industry, Company A and Company B. Both companies have the same reported revenue but Company A has a higher net income than Company B. Which of the following differences in accounting policies and estimates would most likely explain the difference in net income between Company A and Company B, given that the business operations of the two companies are very similar?

A.

Company A has higher estimate for warranty expense as a percentage of sales

B.

Company A has higher amount of sales sold on account

C.

Company A has a lower estimate for the useful life of assets

D.

Company A has higher paid in capital

E.

Company A has a lower estimate for uncollectible accounts as a percentage of sales