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.

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Definitions:

Key Performance Indicator

A measurable value that demonstrates how effectively a company is achieving key business objectives.

Advertising Equivalency

A metric used to compare the value of traditional advertising space to publicity or media coverage achieved through other means.

Social Media Equivalency

A valuation method that attempts to equate social media efforts and activities with traditional advertising value.

Display Ad

An online advertising format where visual ads are served on web pages next to content.