Question $14(7\mathrm{.}14$ points$)$

Which of the following is true?

A common$-$size balance sheet shows the firm's assets and liabilities as a

percentage of net sales.

An average collection period far above the industry norm may indicate that the

firm's credit policy is hurting sales by restricting credit to the very best customer.

The average collection period is the average number of days an accounts

receivable remains outstanding.

The current ratio, sometimes called the "acid test," is a more stringent measure

of liquidity than the quick ratio.