Which One of the Following Statements Is Correct

question 75

Multiple Choice

Which one of the following statements is correct?

• A)An aging schedule helps identify those customers who are the most delinquent.
• B)The percentage of total receivables that falls within a certain time period on an aging schedule will remain constant over time even if the firm has seasonal sales.
• C)Normally firms call their delinquent customers prior to sending them a past due letter.
• D)A constant average collection period over a period of time is cause for concern.
• E)It is common practice when a customer files for bankruptcy to sell that customer's receivable at face value.

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Definitions:

Social Interaction

The process by which individuals act and react in relation to others in a society, shaping social relationships and society itself.

Fraternity Brothers

Male members of a fraternity, a social organization typically found in colleges and universities.

Primary Group

A small social group whose members share close, personal, enduring relationships.

Coterie

An exclusive group or circle of people with a shared interest or purpose, often characterized by a strong sense of unity or loyalty.