If a Firm's Terms Are 2/10,net 30 Days,and Its DSO

question 88

True/False

If a firm's terms are 2/10,net 30 days,and its DSO is 28 days,we can be certain that the credit department is functioning efficiently and that the percentage of past due accounts is minimal.

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Definitions:

Slippery Slope Fallacy

A logical fallacy that asserts without sufficient evidence that a relatively small first action leads inevitably to a chain of related (negative) events.

Predicted Outcome

A predicted outcome is the expected result of an experiment or model, often based on theoretical insight or previous data.

Hasty Generalization

A fallacy in which a conclusion is not logically justified by sufficient or unbiased evidence.

Composition

The act of combining parts or elements to form a whole; in logic, the fallacy of assuming that what is true of the part is true for the whole.