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:

Denial

Denial is a psychological defense mechanism where an individual refuses to accept reality or facts, often to protect themselves from facing uncomfortable truths or emotions.

Having An Affair

Engaging in a romantic or sexual relationship with someone other than one’s spouse or partner.

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Denial

A defense mechanism where a person refuses to accept reality or facts, effectively blocking external events from awareness.