Which of the Following Statements Is CORRECT

question 1

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales
• Outstanding (DSO) will increase.
• C) There is no relationship between the days' sales outstanding (DSO) and the average collection period (ACP). These ratios measure
• Entirely different things.
• D) A reduction in accounts receivable would have no effect on the
• Current ratio, but it would lead to an increase in the quick ratio.
• E) If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding will decline.

---

Definitions:

Sense of Smell

A sensory function provided by the olfactory system, allowing individuals to perceive and differentiate odors.

Glial Cells

Supportive cells in the nervous system that play key roles in maintaining homeostasis, forming myelin, and providing support and protection for neurons.

Somatic Nervous System

Part of the peripheral nervous system responsible for voluntary control of body movements through the action of skeletal muscles.

Neurotransmitters

Neurotransmitters are chemicals in the brain that transmit signals from one neuron to another, playing key roles in various physiological and psychological functions.