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Author Question: Which statement about accounts receivable is correct? (Read 14 times)

majortom123

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Which statement about accounts receivable is correct?

If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days’ sales outstanding (DSO) will decrease.


If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days’ sales outstanding (DSO) will increase.


If a firm increases its accounts receivable while holding its sales constant, then, other things held constant, its days’ sales outstanding (DSO) will decrease.


If a firm’s days’ sales outstanding (DSO) was higher than the industry average and kept increasing, this would be interpreted as a positive sign and the firm would collect the receivables easily.



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Marked as best answer by majortom123 on Aug 7, 2023

ElaneShive

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majortom123

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Reply 2 on: Aug 7, 2023
Wow, this really help


amit

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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