Company A has a receivables turnover ratio of six times, while Company B, which operates in the same market sector, has a receivables turnover ratio of five times.


Company A has a receivables turnover ratio of six times, while Company B, which operates in the same market sector, has a receivables turnover ratio of five times.

This suggests that
A . Company A has a lower level of receivables than Company B and is, therefore, more
efficient than Company

C . Company A has a higher level of receivables than Company B and is, therefore, less efficient than Company
E . Company A has a lower level of receivables than Company B and is, therefore, less efficient than Company
G . Company A has a higher level of receivables than Company B and is, therefore, more efficient than Company

Answer: A

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