Company A and Company B operate in the same industry and region. Compared to Company B, Company A has a low receivables turnover ratio and a correspondingly high average collection period. From this information, we can conclude that Company A is managing its receivables better than Company B. T/F

The answer is false

Explanation:

A high receivables turnover ratio means either that a company only recognise cash basis transactions or collection of accounts receivable is efficient and easy.

A low receivables turnover ratio ratio means the company is not collecting its accounts receivable on time which might lead to bad debt.

Average collection period is important for business. A lower average collection period is better than a higher average collection period.

im thinking a but im not 100% sure

explanation:

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