Which of the Following Statements Is CORRECT

question 93

Multiple Choice

Which of the following statements is CORRECT?

• A) If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding will decline.
• B) If a security analyst saw that a firm's days' sales outstanding (DSO)was higher than the industry average and was also increasing and trending still higher, this would be interpreted as a sign of strength.
• C) If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding (DSO)will increase.
• D) There is no relationship between the days' sales outstanding (DSO)and the average collection period (ACP).These ratios measure entirely different things.
• E) A reduction in accounts receivable would have no effect on the current ratio, but it would lead to an increase in the quick ratio.

Discuss reasons for psychological opposition to the use of lie detectors.

Identify factors that can intensify emotions besides the stimulus itself.

Understand the evidence of emotional reactions without deliberate rational thinking.

Understand the concept of the endowment effect in behavioral economics.

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time, including currency and balances held in checking and savings accounts.

Real Output

The total value of all goods and services produced in an economy, adjusted for inflation, reflecting the true productivity of the economy.

Prime Rate

Prime Rate is the interest rate that banks charge their most creditworthy customers.

Real Interest Rate

Nominal interest rate minus inflation rate.