An Increase in the Effort Put into Collection of Accounts

question 11

Multiple Choice

An increase in the effort put into collection of accounts receivable will result in ________ in the investment in accounts receivable, ________ in bad debts expense, and ________ in collections expenditure.

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

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Definitions:

Firms

Businesses or companies engaged in commercial, professional, or industrial activities.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time period.

Peppermint Candy Canes

Traditional Christmas sweets with a distinctive red and white striped pattern, flavored with peppermint.

Sugar

A sweet-tasting, soluble carbohydrate found in many plants, commonly used as a sweetener in foods and drinks.