Which of the Following Statements Is Correct

question 79

Multiple Choice

Which of the following statements is correct?

• A)If credit sales as a percentage of a firm's total sales increases, and the volume of credit sales also increases, then the firm's accounts receivable will automatically increase.
• B)It is possible for a firm to overstate profits by offering very lenient credit terms that encourage additional sales to financially weak firms. A major disadvantage of such a policy is that it is likely to increase uncollectible accounts.
• C)Firms use seasonal dating primarily to decrease their DSO.
• D)Seasonal dating with terms 2/15, net 30 days, with April 1 dating, means that if the original sale took place on February 1, the customer can take the discount up until March 15, but must pay the net invoice amount by April 1.

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Definitions:

Phenotype

The actual form, or constitution, of a person as determined by heredity and environmental factors.

Heredity

The passing of traits from parents to offspring through genes.

Pelvic Inflammatory Disease

An infection of the female reproductive organs, often caused by sexually transmitted infections, leading to severe health complications including infertility.

PID

Pelvic Inflammatory Disease, a condition affecting women characterized by infection and inflammation of the reproductive organs, often caused by sexually transmitted infections.