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Question
High Inc. has an accounts receivable turnover ratio of 7.3. Low Company has an accounts receivable turnover ratio of 5. Assuming that High and Low have the same sales level, which of the following statements is correct?A) High's average collection period is less than Low's.
B) Low's average collection period is less than High's.
C) High has a higher accounts receivable balance on average than does Low Company.
D) Low Company has (on average) a lower accounts receivable balance than does High.
Answer
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