Business a Is a Computer Manufacturer Who Supplies Large Electrical

Multiple Choice

Business A is a computer manufacturer who supplies large electrical superstores on credit. Business B is a food retailer who makes cash sales. Which of the following is true?

A) Business A is likely have a higher current and acid test ratio than Business B.
B) Business B is likely have a higher current ratio than Business A and a lower acid test ratio than Business A.
C) The inventory holding period of Business B is likely to be longer than Business A.
D) Businesses A and B are likely to have similar trade receivable days.