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:

Least Advantaged

Individuals or groups who have the least resources, opportunities, and social advantages in a society.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Kantian Principle

Ethical principles derived from the philosophy of Immanuel Kant, emphasizing the importance of intention, duty, and the categorical imperative.

Difference Principle

A concept from political philosophy suggesting that inequalities in society are only justifiable if they benefit the least advantaged members.