Which of the Following Is Not Correct for a Firm

question 14

Multiple Choice

Which of the following is not correct for a firm with seasonal sales and customers who all pay promptly at the end of 30 days?

• A) The quarterly uncollected balances schedule will be the same in each quarter.
• B) The level of accounts receivable will be constant from month to month.
• C) The ratio of accounts receivable to sales will vary from month to month.
• D) The level of accounts receivable at the end of each quarter will be the same.
• E) DSO will vary from month to month.

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Definitions:

Single Peaked

A term used to describe preferences or utility functions that increase to a highest point (the peak) and then decrease, indicating a clear optimal choice or outcome.

Voting Cycles

Repeated patterns of preference changes among voters or decision-makers, leading to inconsistencies in collective decisions.

Pure Private Good

A type of good that is both excludable and rival in consumption, meaning access to the good can be limited, and one person's use of the good diminishes its availability for others.

Pure Public Good

A pure public good is characterized by non-excludability and non-rivalry, meaning one person's consumption does not reduce availability for others and no one can be prevented from consuming it.