Suppose a Firm Changes Its Credit Policy from 2/10 Net

question 85

True/False

Suppose 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.The average accounts receivable balance will probably decline as a result of this change.

---

Definitions:

Action Potential

A momentary change in electrical potential on the surface of a neuron that occurs when it is stimulated and is capable of transmitting a signal along the neuron.

Millivolts

A unit of electric potential equal to one thousandth of a volt.

Relative Refractory Period

A phase following immediate action where a neuron is less responsive to stimulation and requires a stronger than normal impulse to activate.

Sodium

A chemical element (Na) that is a highly reactive metal and an essential nutrient for human health, particularly in nerve function and fluid balance.