Which of the Following Statements Best Describes DSO

question 16

Multiple Choice

Which of the following statements best describes DSO?

• A) Other things held constant, the higher a firm's DSO, the better its credit department.
• B) If a firm that sells on terms of net 30 changes its policy to 2/10, net 30, and if no change in sales volume occurs, then the firm's DSO will probably increase.
• C) If a firm sells on terms of 2/10, net 30, and its DSO is 30 days, then its aging schedule would probably show some past due accounts.

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Definitions:

Antheridia

Male reproductive structures in ferns, mosses, and some algae, which produce and release sperm.

Archegonia

Egg-producing structures, as in the moss life cycle.

Gametophyte

Haploid generation of the alternation-of-generations life cycle of a plant; produces gametes that unite to form a diploid zygote.

Alternation of Generations

A reproductive cycle of certain plants and algae that involves a regular alternation between two distinct forms: the sexual phase (gametophyte) and the asexual phase (sporophyte).