Which of the Following Is Not Correct for a Firm

question 14

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

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Definitions:

Self-Expansion Theory

A psychological theory proposing that individuals have a fundamental motivation to enhance their efficacy through relationships and experiences, leading to personal growth.

Assortative Mating

The idea that people are attracted to others who are similar to them in some kind of social hierarchy.

Equity Theory

The idea that people are motivated to maintain a sense of fairness or equity, whereby both partners feel that the proportion of outcomes (rewards) to inputs (costs) that each receives is roughly equal.

Social Hierarchy

The organization of individuals within a society that is ranked from higher to lower based on power, status, or other criteria.