If a Firm with Credit Terms of 2/10 Net 30

question 44

Multiple Choice

If a firm with credit terms of 2/10 net 30 were to change its terms to 2/10 net 60,the result would probably be

• A) more customers would take advantage of the cash discount.
• B) fewer customers would take advantage of the cash discount.
• C) increased accounts receivable turnover.
• D) a reduction in safety stock.