Which of the Following Is Not Correct for a Firm

question 14

Multiple Choice

Which of the following is not correct for a firm with seasonal sales and customers who all pay promptly at the end of 30 days?

• A) The quarterly uncollected balances schedule will be the same in each quarter.
• B) The level of accounts receivable will be constant from month to month.
• C) The ratio of accounts receivable to sales will vary from month to month.
• D) The level of accounts receivable at the end of each quarter will be the same.
• E) DSO will vary from month to month.

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