Which One of the Following Statements Is True If a Company's

question 64

Multiple Choice

Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long?

• A)The company may need to borrow to acquire operating cash.
• B)The company may offer trade discounts to lengthen the collection period.
• C)Cash flows from operations may be higher than expected for the company's sales.
• D)The company should expand operations with its excess cash.

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Definitions:

Isotonic

A solution having the same osmotic pressure as some other solution, typically that of a cell or body fluid, which prevents net movement of water across membranes.

Net Movement

The overall transfer or migration of substances or particles from one location to another, often described in terms of direction and magnitude.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's hydrosphere and the fluids of all known living organisms.

Plasmolysis

The process in which plant cells lose water in a hypertonic solution, causing the cell membrane to detach from the cell wall.