Which One of the Following Factors Tends to Favor Longer

question 94

Multiple Choice

Which one of the following factors tends to favor longer credit periods?

• A)high consumer demand
• B)lower priced merchandise
• C)increased credit risk
• D)merchandise with low collateral value
• E)increased competition

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Definitions:

ASPE

Accounting Standards for Private Enterprises; a set of accounting standards for private companies in Canada, focusing on simplicity and cost-effectiveness.

Accounts Receivable

Accounts receivable represents money owed to a company by customers for products or services delivered but not yet paid for.

Operating Activities

Activities that relate to a company’s primary business operations, including revenue and expense transactions affecting net income.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal loan amount.