Which of the Following Actions Will Tend to Decrease the Accounts

question 23

Multiple Choice

Which of the following actions will tend to decrease the accounts receivable period?
I. loosening the standards for granting credit to customers
II. increasing the discount for early payment by credit customers
III. increasing the finance charges applied to all customer balances outstanding over thirty days
IV. granting discounts for cash sales

• A) I and III only
• B) II and IV only
• C) I, II and IV only
• D) II, III and IV only
• E) I, II, III and IV

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Definitions:

Social Affiliation

The act of connecting or associating with others in a social context, forming relationships or bonds.

Bonding

The process of developing a close and emotional relationship between individuals, such as between parents and their newborn.

Friends

Individuals with whom one has a bond of mutual affection, typically exclusive of sexual or family relations.

Age

The length of time that a person or object has been alive or in existence.