Assuming That We Can Earn a 13

question 91

Multiple Choice

Assuming that we can earn a 13.5% return on accounts receivable,which of the following actions to finance an increase in our accounts receivable balance would be optimal?

• A) a reduction in marketable securities that are earning a return of 12.2%
• B) a decrease in inventories that are earning a 17.6% return
• C) an increase in bank loans that would cost us 14.5%
• D) an increase in accounts payable that would cost our firm 15%

---

Definitions:

Continuous

Without interruption or end, often used to describe processes or events that persist over time without stopping.

Cephalocaudal

A principle of growth and development where development proceeds from the head downwards through the body.

Proximodistal

A pattern of growth and development where development proceeds from the center of the body outward towards the extremities.

Infant's Head

The upper part of a baby's body that contains the brain, eyes, ears, nose, and mouth, crucial for early sensory and cognitive development.