CIMA Fundamentals of financial accounting BA3 Question # 93 Topic 10 Discussion

CIMA Fundamentals of financial accounting BA3 Question # 93 Topic 10 Discussion

BA3 Exam Topic 10 Question 93 Discussion:
Question #: 93
Topic #: 10

Refer to the exhibit.

BA3 Question 93

The following information is available in respect of two companies that operate in the same market sector:

Which one of the following statements most accurately describes the companies' relative position?


A.

Company A has the shortest working capital cycle and the best control on both inventories and payables.


B.

Company B has the shortest working capital cycle and the best control on both inventories and payables.


C.

Company A has the shortest working capital cycle and the best control on inventories.


D.

Company B has the shortest working capital cycle and the best control on payables and receivables.


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