Which of the Following Statements Is CORRECT

question 62

Multiple Choice

Which of the following statements is CORRECT?

• A) If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding will decline.
• B) If a security analyst saw that a firm's days' sales outstanding (DSO) was higher than the industry average and was also increasing and trending still higher, this would be interpreted as a sign of strength.
• C) If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding (DSO) will increase.
• D) There is no relationship between the days' sales outstanding (DSO) and the average collection period (ACP).These ratios measure entirely different things.
• E) A reduction in accounts receivable would have no effect on the current ratio, but it would lead to an increase in the quick ratio.

---

Definitions:

Audience Behaviour Strategies

Audience Behaviour Strategies involve techniques and methods used by marketers or content creators to understand and influence the actions and reactions of their target audience.

Communication

The act or process of using words, sounds, signs, or behaviors to express or exchange information or to express your ideas, thoughts, feelings, etc., to someone else.

Management Techniques

Strategies or methodologies employed by leaders and managers to effectively guide and optimize the performance of their teams or organizations.