Most Firms That Sell to Other Businesses, as Opposed to Consumers

Multiple Choice

Most firms that sell to other businesses, as opposed to consumers, sell on account and collect within 30 to 90 days.Interpreting any particular firm's accounts receivable turnover and days receivable outstanding requires knowing the terms of sale.If a firm's terms of sale are "net 30 days" and the firm collects its accounts receivable in 45 days, then the

A) collections are not in accord with the stated terms.
B) situation warrants a review of the credit and collection activity to ascertain the cause.
C) situation warrants a review of the credit and collection activity to guide corrective action.
D) situation indicates that the firm handles accounts receivable well.
E) choices a, b and c