Which of the Following Statements Is a Correct Representation of the Effect

question 7

Multiple Choice

Which of the following statements is a correct representation of the effect of the reinstatement of an accounts receivable account previously written off?

• A) Days' sales in receivables increases by the reinstatement of the account.
• B) Return on sales decreases by the reinstatement of the account.
• C) Days' sales in receivables is not affected by the reinstatement of the account.
• D) Return on sales is not affected by the reinstatement of the account.

Identify the roles and responsibilities of key financial management positions within companies.

Comprehend the challenges and strategies in managing assets for international companies.

Understand the concept of financial leverage and its effects on a company's financial flexibility and shareholder return.

Recognize the importance of financial planning, control, and the forecasting process in corporate finance.

---

Definitions:

Significant Savings

Refers to a substantial reduction in costs or expenses, often highlighted to convince customers of the economic benefits of a product or service.

Premium

An amount paid for a contract of insurance or the added cost for a product or service that offers higher quality or features.

Writing Instruments

Tools used for writing, such as pens, pencils, markers, and others, essential in various forms of communication and art.

Desk Accessories

Items used to enhance organization, functionality, or aesthetics of a workstation, including pen holders, file trays, and lamps.