Which One of the Following Statements Is Most Likely Correct

question 16

Multiple Choice

Which one 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% of its annual sales.

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Definitions:

Cost Accounting Systems

The framework and processes used to systematically record, measure, and analyze costs associated with a company's operations, for the purpose of internal decision making.