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:

Boston Pizza

A Canadian-based chain of restaurants that specializes in pizza, pasta, and a variety of other casual dining menu items.

Wheel Of Retailing

A theory suggesting that retail businesses start with low prices and minimal services, gradually adding services and increasing prices as they grow.

Low Prices

The condition of goods or services being offered for sale at a reduced or comparatively lower cost.

Low Margins

Refers to a small difference between the cost to produce and sell a product and the price at which it is sold, indicating lower profitability.