Which of the Following Would Best Explain an Increase in Receivables

question 54

Multiple Choice

Which of the following would best explain an increase in receivables turnover?

• A)The company adopted new credit policies last year and began offering credit to customers with weak credit histories.
• B)Due to problems with an error in its old credit system, the company had accumulated a substantial amount of uncollectible accounts and wrote off a large amount of its receivables.
• C)To match the terms offered by its closest competitor, the company adopted new payment terms now requiring net payment within 30 days rather than 15 days, which had been its previous requirement.
• D)To keep its share price from falling in a highly competitive market, the company began to recognize revenues from their distributors upon delivery instead of waiting until the right to return period has passed.

Comprehend the purpose and use of guides, directories, and citation checking in online legal research.

Understand the concept of two-part tariff and its implementation in various scenarios.

Analyze and apply the concept of price discrimination in different market contexts.

Comprehend the pricing strategies utilized by firms to optimize revenue through bundling and tying.

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Definitions:

CPI

The Consumer Price Index is an indicator that calculates the overall average prices of a selection of consumer items and services, including food, transportation, and healthcare, which is utilized to measure inflation.

Winner-Take-All Markets

Markets in which the top performers are able to capture a very large share of the rewards, and the rest are left with very little.

Substitution Effect

The economic understanding that as prices rise or incomes decrease, consumers will replace more expensive items with less costly alternatives.

Income Effect

The Income Effect refers to the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.