Use the Information Above to Answer the Following Question

question 10

Multiple Choice

Use the information above to answer the following question.If the company changes its credit granting policies and begins granting credit to less creditworthy customers,which of the following statements is true regarding the likely effect on the receivables turnover ratio and the days to collect measure?

• A)The receivables turnover ratio will decrease and days to collect will increase.
• B)The receivables turnover ratio will increase and days to collect will increase.
• C)The receivables turnover ratio will decrease and days to collect will decrease.
• D)The receivables turnover ratio will not change and days to collect will decrease.

Understand the impact of government transactions, transfer payments, and international trade on GDP.

Explain the significance of investment spending and the types of goods included in it.

Assess and calculate the effect of price changes on economic indicators using the GDP deflator.

Distinguish between imports and exports and their effect on GDP.

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Definitions:

Senior Employee

An employee who holds a higher rank within an organization, often because of longer tenure or greater experience.

Promotion Decisions

Promotion decisions are the determinations made within an organization regarding the advancement of employees to higher positions, based on criteria like performance, seniority, and organizational needs.

Just Cause Discipline

A principle that requires employers to provide a fair and valid reason for disciplinary actions, such as termination or suspension, against an employee.

Seniority Rights

Policies that prioritize longer-serving employees for promotions, benefits, and protections within a company, often during layoffs.