Which of the Following Statements Is CORRECT

question 49

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) If a firm that sells on terms of net 30 changes its policy to 2/10,net 30,and if no change in sales volume occurs,then the firm's DSO will probably increase.
• C) If a firm sells on terms of 2/10,net 30,and its DSO is 30 days,then the firm probably has some past due accounts.
• D) If a firm sells on terms of net 60,and if its sales are highly seasonal,with a sharp peak in December,then its DSO as it is typically calculated (with sales per day = Sales for past 12 months/365)would probably be lower in January than in July.
• E) If a firm changed the credit terms offered to its customers from 2/10,net 30 to 2/10,net 60,then its sales should increase,and this should lead to an increase in sales per day,and that should lead to a decrease in the DSO.

Understand the concept of comparative advantage and how it determines production specialization between countries or individuals.

Identify the relationship between opportunity costs and comparative advantage.

Distinguish between absolute and comparative advantage.

Recognize how specialization based on comparative advantage benefits trading partners.

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Definitions:

Declarative Memory

The type of long-term memory that allows individuals to consciously recall facts and events.

Positron Emission Tomography

An imaging test that uses a radioactive substance to help visualize and measure metabolic processes in the body.

Temporal Lobes

Areas of the brain located on the sides of the cerebral hemisphere, involved in processing auditory information and encoding memory.

Occipital Lobes

The region of the brain located at the back of the head, responsible for processing visual information.