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:

Spina Bifida

A birth defect where there is incomplete closing of the backbone and membranes around the spinal cord.

Latex Allergy

An allergic reaction to natural rubber latex products, causing symptoms ranging from skin irritation to severe allergic reactions.

Desensitization

A psychological process that reduces the emotional responsiveness to a stimulus by repeated exposure to that stimulus.

Myelomeningocele

A birth defect in which the backbone and spinal canal do not close before birth, exposing the spinal cord and membranes.