Which of the Following Is True of Changes in Cash

question 91

Multiple Choice

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

• A) 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.
• B) If a firm decreases 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.
• C) 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 decrease.
• D) 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 decrease.

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Definitions:

Critical Incidents Method

A performance appraisal method focusing on the most significant actions of an employee, either positively or negatively impacting their job effectiveness.

Graphic Rating Scale

A method used in performance evaluations that involves marking an employee's level of performance on a chart with predefined categories.

Essay Method

A performance appraisal technique where evaluators write a narrative description of an employee's strengths, weaknesses, and potential.

Behaviourally Anchored Rating Scale

A performance appraisal method that uses specific examples of behavior to rate employees, making the evaluation more objective and transparent.