Which of the Following Statements Is Most Correct

question 60

Multiple Choice

Which of the following statements is most correct?

• A) Other things held constant, the higher a firm's days sales outstanding (DSO), the better its credit department.
• B) If a firm that sells on terms of net 30 changes its policy and begins offering all customers terms of 2/10, net 30 days, and if no change in sales volume occurs, then the firm's DSO will probably increase.
• C) If a firm sells on terms of 2/10, net 30 days, and its DSO is 30 days, then its aging schedule would probably show some past due accounts.
• D) Statements a and c are correct.
• E) None of the statements above is correct.

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Definitions:

Performance Appraisal

A systematic evaluation process by which an employee's job performance and productivity are assessed, typically by their supervisor.

Growth Opportunities

Potential scenarios or pathways for personal or professional development and expansion, often leading to increased competence or market share.

Promotions

The act of raising someone to a higher position or rank within an organization, often accompanied by increased responsibilities and benefits.

Reward Allocation

The distribution of financial or non-financial benefits among group members based on their contributions, performance, or recognized needs.