Which Statement About Accounts Receivable Is Correct

question 13

Multiple Choice

Which statement about accounts receivable is correct?

• A) If a security analyst saw that a firm's DSO was higher than the industry average and was also increasing and trending still higher, this would be interpreted as a sign of strength.
• B) If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its DSO will increase.
• C) There is no relationship between the DSO and the ACP. These ratios measure entirely different things.
• D) If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding will decline.

Understand the concept of the production possibilities frontier (PPF) and its assumptions.

Differentiate between attainable and unattainable points on the PPF.

Understand the implications of efficient resource use on the PPF.

Explain the concept of opportunity cost and its relationship to the PPF.

---

Definitions:

Androgen Receptors

Proteins within cells that bind to androgens (male hormones), which play crucial roles in the development and maintenance of male characteristics.

Genetic Error

A mistake or mutation in the genetic material, leading to alterations in the DNA sequence that may affect an individual's development or function.

Evolutionary Psychologists

Scientists who study the adaptations, psychological mechanisms, and behaviors that have evolved over time to solve specific survival and reproductive challenges.

Evolutionary Adaptations

Changes in organisms over generations due to natural selection, which improve their ability to survive and reproduce in a particular environment.