Which of the Following Statements Is Most Likely Correct for a Firm

question 25

Multiple Choice

Which of the following statements is most likely correct for a firm with an average collection period of 90 days?

• A)Its average daily sales are low
• B)Its average daily sales are high
• C)Its current ratio will be high
• D)It is providing financing for approximately 25 percent of its annual sales

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Definitions:

Delivery Satisfaction

A measure of how well the delivery services of a business meet or exceed customer expectations.

Service Complaints

Expressions of dissatisfaction from customers regarding the quality or delivery of services.

Repeat Orders

Orders placed by customers for the same goods or services they have purchased previously, indicating satisfaction and ongoing demand.

Lag Indicator

A measurement indicating the results of actions already taken, reflecting outcomes from previous strategies or performance.