Which of the Following Is Not Necessarily True? Increasing the Cash

question 47

Multiple Choice

Which of the following is not necessarily true? Increasing the cash discount which a firm offers to its debtors for prompt payment will:

• A)reduce the average collection period.
• B)increase the net profit of the firm.
• C)reduce average accounts receivable.
• D)All of the statements are true.

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Definitions:

Model Business Corporation Act

A set of model laws prepared to provide a standard for the governance of corporations, which individual states may adopt or modify.

Voting

The act of expressing a choice or decision in an election or other formal decision-making process.

Straight Voting

A method of voting in corporate elections where shareholders must assign all of their votes to one candidate for each vacancy.

Annual General Meeting

A mandatory yearly gathering of a company's interested shareholders to discuss company affairs.