Which One of the Following Statements Is True If a Company's

question 10

Multiple Choice

Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long?

• A)The collection cost would be reduced.
• B)The company may offer sales discounts to shorten the collection period.
• C)Cash flows from operations may be higher than expected for the company's sales.
• D)The company should expand operations with its excess cash.

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Definitions:

Broker

An individual or firm that acts as an intermediary, facilitating transactions between buyers and sellers for a fee or commission.

Internet Company

A business that primarily operates online, providing products or services through the web.

Merchant Wholesalers

Businesses that buy goods in bulk from manufacturers and sell them, usually in smaller quantities, to retailers or other businesses, but not directly to consumers.

Agents and Brokers

Intermediaries who facilitate the buying and selling process in various markets, often dealing in real estate, insurance, or securities.