Which of the Following Statements Is Correct

question 168

Multiple Choice

Which of the following statements is correct?

• A) Other things held constant,the higher a firm's days sales outstanding (DSO),the better its credit department.
• B) A firm will relax its credit standards only if it expects bad debts will not increase because of the change.
• C) If a firm which sells on terms of "net 30" changes its policy and begins offering all customers terms of "2/10,net 30," and if no change in sales volume occurs,then the firm's DSO will probably increase.
• D) If a firm sells on terms of 2/10,net 30,and its DSO is 30 days,then its aging schedule would probably show some past due accounts.
• E) Statements a,b,c,and d are all false.

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Definitions:

Acute

Referring to conditions or diseases that appear suddenly and have severe symptoms but are of short duration.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

REM Periods

Rapid Eye Movement periods, phases of sleep characterized by rapid movement of the eyes, vivid dreams, and increased brain activity.

Circadian Rhythms

Biological processes that display an endogenous, entrainable oscillation of about 24 hours, affecting sleep patterns, hormone release, and other bodily functions.