Which of the Following Is True of Changes in Cash

question 207

Multiple Choice

Which of the following is true of changes in cash discount period?

• A) If a firm decreases its cash discount period, the sales are expected to decrease, the bad debts are expected to increase, and the profit per unit is expected to increase.
• B) If a firm decreases its cash discount period, the sales are expected to increase, the bad debts are expected to increase, and the profit per unit is expected to decrease.
• C) If a firm increases its cash discount period, the sales are expected to decrease, the bad debts are expected to decrease, and the profit per unit is expected to increase.
• D) If a firm increases its cash discount period, the sales are expected to increase, the bad debts are expected to decrease, and the profit per unit is expected to increase.

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