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 gross profit margin percentage and the shorter customers’ collection period.

(b) Company A has the lower gross profit margin percentage and the longer customers’
collection period.

(c) Company A has the higher gross profit margin percentage and the longer customers’ collection period.

(d) Company A has the lower gross profit margin percentage and the shorter customers’ collection period.

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Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

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