Assume Gamma's usual credit terms are 2/10, net 30. Gamma's days outstanding in accounts receivables suggests bad debts are likely _ to accounts receivable. a. Immaterial 6. Material c. Neither A nor B: Bad debts have no relationship with accounts receivable Gamma's profit margin relative to the industry of average of 14%, suggests a __ level of detection risk. a. Low b. High c. Neither A nor B: profit margin is irrelevant to assessing detection risk Gamma's ROA, relative to the industry average of 12%, suggests a _level of inherent cisk a. Low b. High c. Neither A nor B: ROA is irrelevant to assessing inherent risk Gamma's current ratio may be distorted because the company a. Has not fully depreciated and amortized all of its fixed assets 6. Did not present diluted EPS in its financial statements c. Likely has a high level of bad debts