The following information is available about two companies, A Ltd and B Ltd. Which of the following

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The following information is available about two companies, A Ltd and B Ltd.

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Which of the following statements is correct while making a comparison of company A with company B?

(a) Company A has the higher fixed asset usage and the shorter period of inventory (stock) holding.

(b) Company A has the higher fixed asset usage and the longer period of inventory (stock) holding.

(c) Company A has the lower fixed asset usage and the longer period of inventory (stock) holding.

(d) Company A has the lower fixed asset usage and the shorter period of inventory (stock) holding.

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Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

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Question Posted: Mar 06, 2024 07:01 AM

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The following information is available about two companies, A Ltd and B Ltd. Which of the following

Question:

Book value of fixed assets Sales Cost of sales Average stocks (inventory) A Ltd 000s 4,000 3,000 2,200 250 B Ltd 000s 2,800 3,000 1,800 300

Step by Step Answer:

d Gross profit margin of A 800 1003000 26...View the full answer

Financial Accounting

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