Which One of the Following Actions Will Tend to Increase

question 63

Multiple Choice

Which one of the following actions will tend to increase the accounts receivable period? Assume the accounts receivable period is currently 34 days.

• A)tightening the standards for granting credit to customers
• B)refusing to grant additional credit to any customer who pays late
• C)increasing the finance charges applied to all customer balances outstanding over thirty days
• D)granting discounts for cash sales
• E)eliminating the discount for early payment by credit customers

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Definitions:

Vertebra

A bone in the spine that forms part of the vertebral column.

Vertebral Arch

The posterior part of a vertebra that encircles the spinal canal, composed of pedicles and laminae.

Spinous Process

A bony projection off the posterior (back) of each vertebra, which muscles and ligaments attach to, playing a role in movement and stability of the spine.

Odontoid Process

A peg-like projection from the second cervical vertebra around which the first cervical vertebra rotates, enabling head rotation.