Which of the Following Statements Is CORRECT

question 49

Multiple Choice

Which of the following statements is CORRECT?

• A) Other things held constant,the higher a firm's days sales outstanding (DSO),the better its credit department.
• B) If a firm that sells on terms of net 30 changes its policy to 2/10,net 30,and if no change in sales volume occurs,then the firm's DSO will probably increase.
• C) If a firm sells on terms of 2/10,net 30,and its DSO is 30 days,then the firm probably has some past due accounts.
• D) If a firm sells on terms of net 60,and if its sales are highly seasonal,with a sharp peak in December,then its DSO as it is typically calculated (with sales per day = Sales for past 12 months/365)would probably be lower in January than in July.
• E) If a firm changed the credit terms offered to its customers from 2/10,net 30 to 2/10,net 60,then its sales should increase,and this should lead to an increase in sales per day,and that should lead to a decrease in the DSO.

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Definitions:

Internal Reference

A benchmark or standard within an experiment or measurement against which other data or results are compared or calibrated.

Deshielded Proton

A proton in an NMR spectrum that appears at lower field due to its electron cloud being less shielded from external magnetic fields, often indicating an electron-withdrawing group nearby.

Farthest Downfield

In NMR spectroscopy, refers to the signal appearing at the lowest field strength, typically associated with environments experiencing the greatest deshielding.

Signal Intensity

In the context of spectroscopy or imaging, it refers to the magnitude of a detected signal, indicating the presence or concentration of a substance.