Which of the Following Statements Is CORRECT

question 62

Multiple Choice

Which of the following statements is CORRECT?

• A) If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding will decline.
• B) If a security analyst saw that a firm's days' sales outstanding (DSO) was higher than the industry average and was also increasing and trending still higher, this would be interpreted as a sign of strength.
• C) If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding (DSO) will increase.
• D) There is no relationship between the days' sales outstanding (DSO) and the average collection period (ACP).These ratios measure entirely different things.
• E) A reduction in accounts receivable would have no effect on the current ratio, but it would lead to an increase in the quick ratio.

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Definitions:

Bias Free

Communication or content that avoids unfair preferences or prejudices towards any particular group or individual.

Revising Phase

A stage in the writing or project development process where content is reviewed, and changes are made to improve clarity, effectiveness, or accuracy.

3-x-3 Writing Process

The 3-x-3 writing process is a methodological approach to writing that involves three main stages: planning, writing, and revising, aimed at improving the effectiveness and efficiency of written communication.

Indirect Strategy

A communication approach that presents supporting details before leading to the main message or conclusion, often used to soften the impact.