When Using the Bardahl Formula, an Increase in Annual Credit

question 44

Multiple Choice

When using the Bardahl formula, an increase in annual credit sales (while holding the average accounts receivable balance constant) has which of the following effects on the working capital requirements?

• A)increase
• B)decrease
• C)no effect
• D)increase, decrease, or no effect, depending on other factors

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Definitions:

Variable

An element, feature, or factor that can change or vary, often used in programming to represent data that can be modified as the program runs.

Script

A script is a list of commands that can be executed by a certain program or scripting engine, often used for automating tasks within software applications.

Loop

A sequence of instructions that repeats either a specified number of times or until a particular condition is met.

Corporate Cell Phone

A mobile phone provided by an employer for business purposes, allowing employees to communicate and perform work-related tasks outside the office.