If a Firm with Credit Terms of 1/10 Net 30

question 33

Multiple Choice

If a firm with credit terms of 1/10 net 30 were to change its terms to 3/10 net 30,the result would probably be

• A) increased bank loans.
• B) increased accounts receivable turnover.
• C) an increase in the average level of accounts receivable.
• D) a decrease in accounts payable.

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Definitions:

Strategy

The formulation of organizational objectives, scopes, and action plans for gaining advantage.

Objectives

Goals or outcomes that an organization or individual aims to achieve within a specified timeframe.

Strategic Planning

The process of defining an organization's strategy or direction, and making decisions on allocating its resources to pursue this strategy.

Organizational Performance

This measures how efficiently and effectively an organization achieves its goals and objectives.