Which of the Following Statements Is Generally Incorrect

question 90

Multiple Choice

Which of the following statements is generally incorrect?

• A)A 30-day average collection period for accounts receivable is generally preferred over a 20-day average collection period.
• B)A 2:1 current ratio is generally preferred over a 1:1 current ratio.
• C)A 5% dividend yield is generally preferred over a 3% dividend yield.
• D)A 10% net margin is generally preferred over an 8% net margin.

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Definitions:

Generalized

A concept or condition that is widespread, not limited to a specific case, group, or situation, often referring to a broad or overall view.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Accurate Generalizations

Valid conclusions or predictions about a group based on observed patterns or evidence.

Vivid Cases

Highly memorable and detailed instances or examples that stand out in a person’s memory, often influencing perception and decision-making more than statistical data.