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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