Which of These Tends to Create an Unexpected Increase in a Firm's

question 64

Multiple Choice

Which of these tends to create an unexpected increase in a firm's average collection period?

• A)Increased credit sales
• B)The implementation of a cash discount
• C)Increased customer delinquencies
• D)Increased dollar value per each sale
• E)Increased collection efforts

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Definitions:

IFRS

IFRS stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally recognized for preparing financial statements.

GAAP

Widely recognized accounting norms and criteria in the U.S. that guide financial statements.

Property, Plant, Equipment

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been recorded against a company's assets over time.