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.

• 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.

---

Definitions:

Unemployment

The situation when individuals who are capable of working and are actively seeking work are unable to find employment.

Equality

A state of being equal, especially in status, rights, and opportunities.

Positive Economics

The branch of economics that concerns itself with describing and explaining economic phenomena as they are, not as they should be.

Normative Economics

An area of economics that analyzes outcomes based on value judgments about what is desirable or what ought to be, rather than what merely is.