A Firm Changes Its Credit Policy from 2/10, Net 30

question 105

True/False

A firm changes its credit policy from 2/10, net 30, to 3/10, net 30. The change is meant to meet competition, so no increase in sales is expected. Average accounts receivable will probably decline as a result of this change.

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Definitions:

Axillary Artery

A major artery located under the arm, providing blood supply to the upper limb and parts of the thoracic area.

Brachial Artery

A major blood vessel of the upper arm, responsible for supplying oxygenated blood to the arm and hand.

Radial Artery

A major artery in the forearm that supplies blood to the lateral aspect of the hand and is commonly used for checking the pulse.