Company A has a higher days sales outstanding ratio than Company B. Th

Company A has a higher days sales outstanding ratio than Company B. Therefore,

A) other things being equal, Company B has a cash flow advantage over Company A.
B) Company A must be collecting its accounts receivable faster than Company B, on average.
C) Company A has a higher percentage of cash to credit sales than Company B.
D) Company A sells more on credit than Company B.

ANSWER

A