Multiple Choice
Which of the following statements is correct?
A) If a firm has a very high fixed asset turnover, it means that the firm may be nearing its maximum production capacity.
B) An extremely low average collection period will maximize net income.
C) In general, a firm should strive for a high average payment period because it wants to pay for its purchases as quickly as possible.
D) All of these choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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