Which of the Following Statements Is Correct

question 103

Multiple Choice

Which of the following statements is correct?

• A)A firm which makes 90 percent of its sales on credit and 10 percent for cash is growing at a rate of 10 percent annually.If the firm maintains stable growth it will also be able to maintain its accounts receivable at its current level, since the 10 percent cash sales can be used to manage the 10 percent growth rate.
• B)In managing a firm's accounts receivable it is possible to increase credit sales per day yet still keep accounts receivable fairly steady if the firm can shorten the length of its collection period.
• C)If a firm has a large percentage of accounts over 30 days old, it is a sign that the firm's receivables management needs to be reviewed and improved.
• D)Since receivables and payables both result from sales transactions, a firm with a high receivables-to-sales ratio should also have a high payables-to-sales ratio.

Recognize the importance and function of the registration statement in the securities offering process.

Comprehend the concept of insider trading, its legal implications, and the associated roles of individuals.

Understand the various exemptions and defenses available under securities law.

Distinguish between different types of investors and their qualifications under securities regulations.

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Definitions:

Vesicular Follicle

A fluid-filled structure in the ovary that contains a maturing egg and releases it during ovulation.

Extraembryonic Membrane

Membranes outside the embryo, such as the amnion, chorion, yolk sac, and allantois, that support the development of the embryo.

Symmetrical Development

A biological condition or process characterized by balance and proportionate growth of body parts or shapes on both sides of a plane or axis.

Yolk Sac

An early embryonic structure that provides nutrition to the developing embryo before the placenta forms.