What Is Considered an Ethical Practice, Once Established, Remains Constant

question 17

True/False

What is considered an ethical practice, once established, remains constant and acceptable unless specifically preempted by statute.

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Definitions:

Net 30 Credit Policy

A specific credit term where customers are given 30 days to pay the invoice in full, widely used in business transactions to manage cash flow.

Monthly Interest Rate

The interest rate expressed as a monthly percentage, determining the amount of interest charged or earned per month.

Credit Policy

A set of guidelines that a company follows to determine credit limits and terms for customers, aiming to manage risk and promote sales.

Operating Cycle

The operating cycle is the amount of time it takes for a company to purchase inventory, sell it to customers, and collect cash from the sales.