A supplier is evaluating whether to offer $90-$day credit terms to a new business client. Which statements are valid considerations: $($i$)$ The firm has strong profitability but declining cash flow; $($ii$)$ The client's high inventory turnover suggests efficient operations; $($iii$)$ The debt ratio has been increasing consistently; $($iv$)$ The company has a recent history of late payment to creditors; $($v$)$ It has strong R&D investment but low liquidity.

Question $45$Answer

a$.$

Only one of the statements is correct

b$.$

None of the statements is correct

c$.$

Three of the statements are correct

d$.$

All of the statements are correct

e$.$

Two of the statements are correct