A Large Manufacturing Firm Has Been Selling on a 3/10

question 105

Multiple Choice

A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What change might be expected on the balance sheets of its customers?

• A)Decreased receivables and increased bank loans
• B)Increased receivables and increased bank loans
• C)Increased payables and decreased bank loans
• D)Increased payables and increased bank loans

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Definitions:

Alcohol-Based Soap

A cleansing product containing alcohol, designed to kill bacteria and viruses, often used for hand hygiene in healthcare settings.

Tuberculosis

A contagious bacterial infection primarily affecting the lungs, but can spread to other parts of the body.

Surgical Masks

Face masks worn by healthcare professionals during surgery and other health procedures to prevent the spread of infections through respiratory droplets.

Contact Precautions

Precautions taken to prevent the possibility of illnesses easily transmitted by direct contact.