Lengthening the Credit Period Is Likely to Result in All

question 4

Multiple Choice

Lengthening the credit period is likely to result in all of the following except:

• A)higher credit sales.
• B)more cash sales.
• C)larger investment in receivables.
• D)longer average collection period.

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Definitions:

Accredited Investors

Individuals or institutions that meet certain financial criteria and are therefore allowed to invest in certain types of complex and higher-risk financial products.

Securities Act

Legislation that regulates the issuance and sale of securities to protect investors from fraud.

Net Financial Assets

The difference between a person's or entity's total financial assets and total financial liabilities.

Security

Financial instruments or assets held to back debts or investments, or as a means to ensure the fulfillment of financial obligations.