Which of the Following Statements Is Correct

question 79

Multiple Choice

Which of the following statements is correct?

• A)If credit sales as a percentage of a firm's total sales increases, and the volume of credit sales also increases, then the firm's accounts receivable will automatically increase.
• B)It is possible for a firm to overstate profits by offering very lenient credit terms that encourage additional sales to financially weak firms. A major disadvantage of such a policy is that it is likely to increase uncollectible accounts.
• C)Firms use seasonal dating primarily to decrease their DSO.
• D)Seasonal dating with terms 2/15, net 30 days, with April 1 dating, means that if the original sale took place on February 1, the customer can take the discount up until March 15, but must pay the net invoice amount by April 1.

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Definitions:

Atlantoaxial

Pertaining to the joint between the atlas (C1 vertebra) and the axis (C2 vertebra) that allows for the rotation of the head.

Cartilaginous Joints

Joints where the bones are attached by cartilage, allowing for more movement than fibrous joints but less movement than synovial joints.

Hyaline Cartilage

A translucent, bluish-white type of cartilage present in the joints, respiratory tract, and other sites, providing a smooth surface for joint movement as well as support and flexibility.

Fibrocartilage

A type of cartilage with a dense interwoven network of collagen fibers, providing strong support and resisting pressure.