If a Firm Averages $2,000 in Daily Credit Sales and Offers

question 84

True/False

If a firm averages $2,000 in daily credit sales and offers 60-day terms, the average accounts receivable balance will be $120,000.

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Definitions:

Pygmalion Effect

A psychological phenomenon where higher expectations from leaders or teachers lead to an increase in performance among employees or students.

Own Traits

Refers to the characteristics or qualities that distinguish an individual.

Behavior Affects

The ways in which emotions and attitudes can influence an individual’s actions or responses to various situations.

Pygmalion Effect

The effect in which elevated expectations result in improved performance.