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Which of the Following Actions Will Tend to Decrease the Trade

question 49

Multiple Choice

Which of the following actions will tend to decrease the trade receivables 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.

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Definitions:

ATP

Adenosine triphosphate, a high-energy molecule found in the cells of the human body, serving as a primary energy carrier.

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A tart, acidic liquid obtained from lemons, widely used in cooking and beverages for its flavor and high vitamin C content.

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A cleaning solution made from diluting ammonia gas in water, widely used as a disinfectant and cleaner.

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Relating to or involving the breakdown of complex molecules into simpler ones, often with the release of energy, part of the metabolic process.

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