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

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Definitions:

Ethics

The branch of philosophy that deals with questions about morality, guiding the principles of right and wrong in human conduct.

Television Test

An ethical guideline suggesting that one's actions should be considered as if they were to be broadcast on television.

Intuitionism

A philosophical theory that suggests moral truths are known through intuition, asserting that humans have a natural faculty that gives us an understanding of what is morally right or wrong.

Adherents

Individuals who support or follow a particular leader, party, or philosophy.