Which of the following is true?

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.

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

liabilities as a percentage of net sales.

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.