Which of the Following Statements Is CORRECT

question 30

Multiple Choice

Which of the following statements is CORRECT?

• A) In managing a firm's accounts receivable, it is possible to increase credit sales per day yet still keep accounts receivable fairly steady, provided the firm can shorten the length of its collection period (its DSO) sufficiently.
• B) Because of the costs of granting credit, it is not possible for credit sales to be more profitable than cash sales.
• C) Since receivables and payables both result from sales transactions, a firm with a high receivables-to-sales ratio must also have a high payables-to-sales ratio.
• D) Other things held constant, if a firm can shorten its DSO, this will lead to a higher current ratio.
• E) A firm that makes 90% of its sales on credit and 10% for cash is growing at a constant rate of 10% annually.Such a firm will be able to keep its accounts receivable at the current level, since the 10% cash sales can be used to finance the 10% growth rate.

Recognize the importance of negotiation in dispute resolution and the elements contributing to its success.

Understand the procedural steps and requirements involved in civil lawsuits.

Grasp the significance of specialized courts and their focus areas.

Identify the factors influencing the enforcement and satisfaction of court judgments.

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Definitions:

Ethnic Group

Individuals bonded together within a population through similar cultural backgrounds or ancestry.

Jim Crow Laws

Racially discriminatory laws that enforced racial segregation and disenfranchised Black Americans in the southern United States from the late 19th century until the 1960s.

Voting

The process by which citizens or members of a community express their choice or opinion, often through a formal system, on matters of importance or in selecting representatives.

Public Schools

Educational institutions funded and administered by government entities, providing free education to students.