Which Statement Is Not Correct

question 63

Multiple Choice

Which statement is not correct?

• A)A business will prefer a shorter settlement time for its accounts receivable rather than a longer settlement period.
• B)An asset turnover figure of 1.5 times is preferred to a figure of 1.2 times.
• C)A business will prefer a longer average inventory turnover time rather than a shorter turnover time.
• D)None of the statements, i.e., all are correct.

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Definitions:

Anticompetitive Strategies

Practices implemented by businesses to reduce competition, potentially leading to monopolies or unfair market advantages.

Antitrust Legislation

Laws designed to promote competition and regulate monopolistic practices within the marketplace.

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.

Corporate Fraud

Illegal activities undertaken by individuals or companies in a deceitful manner, intending to gain an unfair advantage.