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:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country's economy in real terms over a specific period.

Nominal GDP

The market value of all final goods and services produced within a country in a given period, measured in current prices.

Base Year

A specific year against which economic growth is measured, serving as a standard comparison for other years in index calculations and real values.

Real GDP

Gross Domestic Product adjusted for inflation, reflecting the value of all goods and services produced by an economy in a given year.