Which of the following statements is correct?a. If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding (DSO) will increase.b. If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding will decline.c. A reduction in accounts receivable would have no effect on the current ratio, but it would lead to an increase in the quick ratio.d. If a securities analyst saw that a firm's days' sales outstanding was increasing and was higher than the industry average and also was trending still higher, this would be interpreted as a sign of strength.e. There is no relationship between the days' sales outstanding (DSO) and the average collection period (ACP). These ratios measure different things.

Then try StudyFetch, the AI-powered platform that can answer your questions and teach you more about it!