A Large Manufacturing Firm Has Been Selling on a 3/10

question 105

Multiple Choice

A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What change might be expected on the balance sheets of its customers?

• A)Decreased receivables and increased bank loans
• B)Increased receivables and increased bank loans
• C)Increased payables and decreased bank loans
• D)Increased payables and increased bank loans

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Definitions:

Labor Unions

Labor Unions are organized associations of workers formed to protect and advance their members' interests, negotiating wages, benefits, and working conditions.

Organized Action

Coordinated efforts by a group of people to achieve a specific goal.

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Activities engaged in by individuals or groups to influence the election of political candidates or the outcome of legislative issues.

NASW

National Association of Social Workers, a professional organization supporting the practice and profession of social work through advocacy, education, and ethics.