As Credit Standards Are Relaxed, Sales Are Expected to ________

question 183

Multiple Choice

As credit standards are relaxed, sales are expected to ________ and the investment in accounts receivable is expected to ________.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease; increase

---

Definitions:

Enron

An American energy company known for one of the largest cases of corporate fraud and bankruptcy in history.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Financial Reporting

The method of generating reports that reveal the financial condition of an organization to its management, investors, and governmental authorities.

Top Executives

are the highest-ranking employees in a company or organization, responsible for making major corporate decisions.