Which of the Following Statements Is False

question 89

Multiple Choice

Which of the following statements is false?

• A)time series analysis evaluates a firm's performance over time.
• B)industry comparative analysis compares a firm's ratios against average ratios against average ratios for other companies in the industry.
• C)the average collection period is calculated as the year-end accounts receivable divided by the net sales.
• D)all the above statements are correct.

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Definitions:

Common Resource

A resource like air or water that is not owned by anyone, cannot be easily excluded from use, and is available for use by more than one person or group.

Nonexcludable

A characteristic of a good or service that prevents individuals from being effectively excluded from its use or benefits.

Free-rider Problem

A situation in which individuals consume more than their fair share or pay less than their fair share of the cost of a shared resource.

Public Good

A good that is non-excludable and non-rivalrous, meaning its consumption by one individual does not reduce its availability to others.