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.

---

Definitions:

Formal Operational

Describes a stage in Jean Piaget's theory of cognitive development, where individuals (typically adolescents and adults) gain the ability to think abstractly and reason logically.

Piaget

A Swiss psychologist known for his developmental stage theory that describes how children's cognitive abilities evolve.

Postconventional Moral Reasoning

The highest stage in Kohlberg's moral development theory, where individuals make decisions based on universal ethical principles.

Secondary Sex Characteristics

Physical features that emerge during puberty but are not directly involved in reproduction, such as breast development in females and facial hair growth in males.