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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Definitions:

Exact Opposite

Something that is completely different in every way from something else.

Reactor

An organization or individual that primarily responds to external conditions rather than actively influencing or adapting to changes.

Objective Setting

The process of defining specific, measurable goals that a company or individual aims to achieve within a time frame.

Planning Process

A systematic sequence of actions or steps designed to achieve an organization's strategic goals and objectives.