Which of the Following Is True If a Firm Wishes

question 10

Multiple Choice

Which of the following is true if a firm wishes to collect its accounts faster by imposing stricter credit terms on its customers?

• A) The firm's average collection period is likely to fall.
• B) The firm's accounts receivable turnover might rise.
• C) The firm's sales might decrease.
• D) all of the above

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Definitions:

Type A

A personality type characterized by competitiveness, high ambition, and a sense of urgency, often associated with a higher risk for heart disease.

Easygoing People

Individuals characterized by a relaxed, tolerant, and flexible approach to life, often adapting to circumstances with minimal stress.

Frustration

An emotional state that arises when a person is blocked from achieving a goal or fulfilling a need, leading to feelings of discontent and dissatisfaction.

Need for Achievement

The drive to excel, to achieve in relation to a set of standards, to strive to succeed.