Which of the Following Statements Is True

question 71

Multiple Choice

Which of the following statements is true?

• A) As a general rule, management would want to reduce the firm's average collection period.
• B) As a general rule, management would want to reduce the firm's accounts receivable turnover ratio.
• C) As a general rule, management would want to increase the firm's average collection period.
• D) As a general rule, a firm is not financially affected by the amount of time required to collect its accounts receivable.

Derive cost of goods sold using various inventory methods.

Analyze the impact of inventory valuation choices on financial ratios and business decisions.

Understand the accounting treatment for merchandise returns and allowances.

Distinguish between perpetual and periodic inventory systems and their respective accounting transactions.

---

Definitions:

Norepinephrine

A neurotransmitter and hormone involved in the body's response to stress, increasing heart rate, and blood pressure, and plays a role in attention and response actions.

Serotonin

A neurotransmitter in the brain that plays key roles in mood regulation, digestion, sleep, and other bodily functions.

Humorous Style

An individual's characteristic way of using humor, including timing, delivery, and type of humor.

Pessimistic Style

A cognitive approach that anticipates negative outcomes as the most likely result, focusing on potential problems and failures.