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:

Age Cohort

A group of people who share a similar age and have experienced similar historical or social influences.

Census Generation

The process of systematically acquiring and recording information about the members of a given population, typically conducted by a government.

Peer Group

A social group consisting of individuals of similar age, status, and interests, often significantly influencing behavior and attitudes.

Body Project

The activities, efforts, and work individuals undertake to shape, maintain, or alter the appearance of their bodies according to certain ideals or standards.