A Firm Currently Has Sales of $2,000,000 and Does Not

question 49

Multiple Choice

A firm currently has sales of $2,000,000 and does not offer credit. Management expects sales to rise to $2,500,000 if it offers customers thirty days to pay. Which of the following will probably happen? 1. receivables will turn over more rapidly 2. receivables will turn over more slowly 3. credit sales will increase by more than the increase in sales 4. credit sales will increase by less than the increase in sales​

• A) ​1 and 3
• B) ​1 and 4
• C) ​2 and 3
• D) ​2 and 4

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Definitions:

Vomiting

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The innermost part or core of an organ, such as the medulla of the brain (responsible for autonomic functions) or the medulla of the kidney (involved in urine concentration).

Naloxone

A medication used to block the effects of opioids, especially in overdose, by quickly reversing respiratory depression.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, which is used medicinally as a local anesthetic but is also abused for its euphoric effects.