In Addition to the Bias Introduced When Sales Are Changing,DSO

question 9

Multiple Choice

In addition to the bias introduced when sales are changing,DSO and accounts receivable turnover are sensitive to ________________,making them imperfect measures of changing collection experience (Assume they are calculated correctly based on a necessary information.)

• A)how high or low the previously calculated figure was
• B)the mix of cash and credit sales
• C)the stringency of the company's collection effort
• D)the length of the period over which they are calculated

---

Definitions:

President

The elected head of a republican state or organization, responsible for executing the laws and leading the executive branch.

Federal Reserve System

The central banking system of the United States, responsible for setting monetary policy and regulating banks.

Established

Refers to an entity or concept that has been in existence for a significant period and is widely recognized or accepted.

1913

The year marked by significant historical events, such as the establishment of the Federal Reserve System in the United States.