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) A firm will relax its credit standards only if it expects bad debts will not increase because of the change.
C) If a firm which sells on terms of "net 30" changes its policy and begins offering all customers terms of "2/10,net 30," and if no change in sales volume occurs,then the firm's DSO will probably increase.
D) If a firm sells on terms of 2/10,net 30,and its DSO is 30 days,then its aging schedule would probably show some past due accounts.
E) Statements a,b,c,and d are all false.
Correct Answer:
Verified
Correct Answer:
Verified
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