Multiple Choice
G Co and A Co are both in the biotechnology industry. In 2013, G Co reported a trade payables turnover of 7.71 and A Co reported a ratio of 3.06. Which of the following is an incorrect reason for the difference in ratios?
A) A Co has a lower average trade payables in comparison to G co.
B) G Co has a better payment record in terms of timely payment to vendors.
C) A Co is taking longer to pay vendors.
D) A Co has a higher average trade payables in comparison to G co.
Correct Answer:
Verified
Correct Answer:
Verified
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