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

question 35

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% of its annual sales.

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Definitions:

Anhedonia

The loss of interest in and inability to gain pleasure from most activities, a symptom often associated with depression.

Alogia

A reduction in the amount or content of speech, often seen in schizophrenia, marked by brief and unelaborated responses.

Loosening of Associations

This refers to a thought disorder characterized by speech that is unfocused and illogical, often observed in schizophrenia.