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.

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Definitions:

Partnership

A cooperative relationship between two or more parties who agree to share responsibilities, resources, profits, and losses in a joint business venture.

Ethical Consumerism

The practice of purchasing products and services produced in a way that minimises social and/or environmental damage, while avoiding products and services deemed to have a negative impact on society or the environment.

Social Damage

The negative impact on society or specific communities resulting from actions or policies, which can include economic disparities, environmental degradation, or social injustices.

Environmental Damage

The detrimental impact human activities have on the natural world, including air and water pollution, deforestation, and climate change.