Which of the Following Is Not Correct for a Firm

question 29

Multiple Choice

Which of the following is not correct for a firm with seasonal sales and customers who all pay promptly at the end of 30 days?

• A) DSO will vary from month to month.
• B) The quarterly uncollected balances schedule will be the same in each quarter.
• C) The level of accounts receivable will be constant from month to month.
• D) The ratio of accounts receivable to sales will vary from month to month.
• E) The level of accounts receivable at the end of each quarter will be the same.

---

Definitions:

Obsessive-Compulsive Disorder

A mental disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive, ritualistic behaviors (compulsions) felt necessary to relieve anxiety.

Attention Deficit Hyperactivity Disorder

A neurological disorder characterized by patterns of inattention, hyperactivity, and impulsivity that are not appropriate for a person's age.

Dementia

A decline in cognitive function beyond what might be expected from normal aging, affecting memory, thinking, orientation, comprehension, calculation, learning capacity, language, and judgment.

Dummy Variable

A variable used to model the effect of categorical independent variables. A dummy variable may take only the value zero or one.