Which of the Following Actions Will Tend to Decrease the Accounts

question 50

Multiple Choice

Which of the following actions will tend to decrease the accounts receivable period?
I.Loosening the standards for granting credit to customers
II.Increasing the discount for early payment by credit customers
III.Increasing the finance charges applied to all customer balances outstanding over thirty days
IV.Granting discounts for cash sales

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

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Definitions:

Not-for-Profit Entity

An organization that does not operate for the profit or personal gain of its members and is involved in activities for the benefit of the public or a specific community interest.

Accounting Objectives

The main goals of accounting, including providing financial information about a business to users like shareholders and creditors for decision making.

Voluntary Health And Welfare Entities

Organizations that are primarily funded by donations and are dedicated to health and welfare services for the public, including non-profit hospitals and charities.