Which of the Following Activities Will Increase the Short-Term Net

question 76

Multiple Choice

Which of the following activities will increase the short-term net cash flow for a firm?

• A)Increase a cash bonus for employees.
• B)Increase the firm's days sales outstanding ratio without an increase in sales.
• C)Write off old accounts receivable that are considered uncollectible.
• D)Increase the average amount of time the firm takes to pay accounts.
• E)Increase the time you allow the firm's customers to pay for goods.

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Definitions:

Terminated

Refers to the ending or discontinuation of something, such as employment, a contract, or a project.

Minor

A person under the age of legal adulthood, often defined as under 18 in many jurisdictions, who typically has certain restrictions on their legal rights and responsibilities.

Power of Attorney

A legal document that allows one person (the principal) to appoint another person (the agent) to act on their behalf in legal matters or transactions.

Second Restatement

A compendium of the common law of the United States, revising principles in various areas of law like contracts and torts.