Which of the Following Statements Is false

question 42

Multiple Choice

Which of the following statements is false?

• A) Returns for different industries vary within a wide range
• B) Rates of return for individual industries vary over time
• C) Rates of return of firms within industries vary over time
• D) Different industries' risk levels vary within a wide range
• E) Risk measures for different industries vary within a wide range over time

---

Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated as sales divided by average accounts receivable.

Days' Sales in Receivables

A financial metric that estimates the average number of days it takes a company to collect payments after a sale has been made.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Trend Indication

An analysis or estimate aimed at predicting the future direction of something, often based on past and present data.