If a Company Making Only Cash Sales Is Considering Allowing

question 137

Multiple Choice

If a company making only cash sales is considering allowing customer credit, then __________.

• A) Sales will likely decrease.
• B) The change will result in a source of funds.
• C) Receivables will likely increase.
• D) Net working capital will decrease if funding needs are met with long-term liabilities.
• E) Expenses will fall due to monthly billings and collection efforts.

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Definitions:

Psychological Disorders

Psychological Disorders are patterns of behavioral, cognitive, or emotional symptoms that impact multiple areas of life, leading to distress for the person affected.

Psychoanalysis

A therapeutic approach developed by Sigmund Freud, focusing on unconscious processes as they are manifested in a person's present behavior.

Free Association

A psychoanalytic therapy technique in which a patient says whatever comes to mind to uncover unconscious thoughts and feelings.

Unconscious Conflicts

Internal struggles that occur outside of conscious awareness, often stemming from repressed thoughts and desires, as per Freudian theory.