Which of the Following Statements Is Most Correct

question 34

Multiple Choice

Which of the following statements is most correct?

• A) It is possible for a firm to overstate profits by offering very lenient credit terms which encourage additional sales to financially "weak" firms.A major disadvantage of such a policy is that it is likely to increase uncollectible accounts.
• B) A firm with excess production capacity and relatively low variable costs would not be inclined to extend more liberal credit terms to its customers than a firm with similar costs that is operating close to capacity.
• 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 1st, the customer can take the discount up until March 15th, but must pay the net invoice amount by April 1st.
• E) 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.

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Definitions:

Analgesic

A type of medication used to reduce or eliminate pain.

Nursing Assistive

Refers to the support activities performed by nursing aides or assistive personnel under the supervision of professional nurses, aimed at providing care to patients.

Expressive Aphasia

A neurological condition characterized by the loss of the ability to produce spoken or written language, typically caused by damage to the language areas of the brain.

Pain Intensity Scales

Tools used by healthcare providers to measure a patient's pain level, often to inform treatment decisions.