Which One of the Following Will Increase the Average Balance

question 268

Multiple Choice

Which one of the following will increase the average balance in accounts receivable?

• A) A decrease in the discount period.
• B) Cash sales as an increased percentage of total sales.
• C) A decrease in the firm's cheque processing time.
• D) An increase in the sales amount per customer.
• E) A decrease in the trade discount.

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Definitions:

Qualified Dividend

Dividend payments to shareholders from profits of a corporation that meet specific criteria to qualify for reduced tax rates.

Taxable Income

Income subject to tax, calculated by taking gross income and subtracting allowable deductions, exemptions, and adjustments.

Estate Tax Work

Related to the processing and handling of taxes due on the transfer of property from the deceased to the beneficiaries.

Local Financial Institution

A banking or financial service organization that operates and provides services within a specific local or regional area.