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

question 87

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 the manufacturing firm?

• A) Decreased receivables
• B) Increased receivables
• C) Increased payables
• D) Decreased payables

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Definitions:

Emotion-Focused Coping

A coping strategy that involves managing or reducing the emotional distress associated with a situation.

Subjective Probability

An individual's personal estimation or belief about how likely an event is to occur.

Intention

Intention refers to a person's plan or aim to carry out a specific action, often reflecting their motivation or desired outcome.

Hypochondriac

An individual who excessively worries about having a serious illness despite medical reassurance to the contrary.