Suppose a Firm Changes Its Credit Policy from 2/10 Net

question 85

True/False

Suppose a firm changes its credit policy from 2/10 net 30 to 3/10 net 30.The change is meant to meet competition, so no increase in sales is expected.The average accounts receivable balance will probably decline as a result of this change.

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Definitions:

Copper Plaques

Metal pieces often used for commemorative, artistic, or informative purposes.

European Trader

Historically, refers to merchants from Europe engaged in international trade, notably including the trade of slaves, goods, and resources from the 15th century onwards.

Internal Conflicts

Disputes or struggles within a country, organization, or group, which can range from interpersonal disagreements to nationwide civil unrest.

West Central Africa

A region in Africa that was a significant source of captives for the Atlantic Slave Trade, comprising modern-day Angola, Democratic Republic of the Congo, and parts of Gabon.