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Which of the Following Statements Is True Given the Data

Question 85

Multiple Choice

Which of the following statements is true given the data below?
 Company A  Company B  Sales $250,000$400,000 Ending Accounts Receivable $55,000$55,000\begin{array}{|l|r|r|}\hline& \text { Company A } & \text { Company B } \\ \hline \text { Sales } & \$ 250,000 & \$ 400,000 \\\hline \text { Ending Accounts Receivable } & \$ 55,000 & \$ 55,000\\\hline \end{array}


A) Both companies have the same degree of liquidity with regard to their accounts receivables
B) Company A is likely to collect account receivables more quickly than Company B
C) Company B is likely to collect account receivables more quickly than Company A
D) Company A and Company B will likely collect account receivables at the same time
E) It is impossible to estimate how much time it will take for these companies to collect their receivable based on the given information

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