Which of the Following Statements Best Describes DSO and Aging

question 64

Multiple Choice

Which of the following statements best describes DSO and aging?

• A) If a firm's volume of credit sales declines, then its DSO must also decline.
• B) If a firm changes its credit terms from 1/20, net 40, to 2/10, net 60, the impact on sales can't be determined because the increase in the discount is offset by the longer net terms, which tends to reduce sales.
• C) The DSO of a firm with seasonal sales can vary. While the sales per day calculation is usually based on the total annual sales, the accounts receivable balance will be high or low depending on the season.
• D) An aging schedule is used to determine what portion of customers pay cash and what portion buy on credit.

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Definitions:

Bowel Control

The ability to manage the timing of defecation, which can be affected by various medical conditions.

Physical Maturation

describes the natural process of bodily growth and development, typically culminating in adulthood and full biological functionality.

Cephalexin

An antibiotic medication used to treat a wide variety of bacterial infections.

Loose Stools

Stools that are more liquid than solid, often indicative of digestive issues or infections.