The Effect of a Change in a Firm's Credit Terms

question 45

Multiple Choice

The effect of a change in a firm's credit terms from "net 30" to "2/10, net 30" on its customers' balance sheets is likely to be ____.

• A) decreased accounts receivable
• B) increased accounts receivable
• C) decreased accounts payable
• D) increased accounts payable

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Definitions:

Peroxisomes

Organelles found in virtually all eukaryotic cells that are involved in the catabolism of very long-chain fatty acids, branched-chain fatty acids, D-amino acids, polyamines, and the reduction of reactive oxygen species - specifically hydrogen peroxide.

Fatty Acids

Long hydrocarbon chains that are found in fats, oils, and waxes, serving as a major source of energy and essential components of cell membranes.

Germinating Seeds

The process by which a seed begins to grow and put out shoots after a period of dormancy.

Endoplasmic Reticulum

A network of membranous tubules within the cytoplasm of eukaryotic cells, involved in protein and lipid synthesis, and calcium storage.