An Increase in Which of the Following Will Tend to Increase

question 50

Multiple Choice

An increase in which of the following will tend to increase the length of the credit period?
I.product cost
II.consumer demand
III.product perishability
IV.credit risk

• A)I only
• B)I and II only
• C)II and III only
• D)I and IV only
• E)II only

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Definitions:

Interim Reporting

The financial statements issued by a company for a period less than its full fiscal year, often quarterly, to provide timely information to investors.

Tax Liability

The total amount of tax owed by an individual or corporation to a taxing authority.

Dollar-Value LIFO

An inventory valuation method that uses the last-in, first-out (LIFO) principle, but adjusts for changes in the value of money over time.

Current Cost

The expense required to replace an asset or an inventory item at the present time, as opposed to its historical purchase price.