A Firm's Credit Policy Consists of Which of the Following

question 16

Multiple Choice

A firm's credit policy consists of which of the following items?

• A) Credit period, cash discounts, credit standards, receivables monitoring.
• B) Credit period, cash discounts, credit standards, collection policy.
• C) Credit period, cash discounts, receivables monitoring, collection policy.
• D) Cash discounts, credit standards, receivables monitoring, collection policy.
• E) Credit period, receivables monitoring, credit standards, collection policy.

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Definitions:

Differential Pinions

Small gears within a differential that engage with the ring gear to allow for the difference in wheel speed on a vehicle when turning.

Spider

A component within a differential of a vehicle that allows for the distribution of power to the wheels, enabling them to rotate at different speeds.

Hypoid Gears

Gears in which the gear faces are non-parallel and non-intersecting, allowing for smoother and quieter operation, typically used in automotive rear axles.

EP Rated

Stands for Extreme Pressure Rated, indicating that a lubricant or oil has additives that provide protection under high pressure and load conditions.