Which One of the Following Statements Is True If a Company's

question 10

Multiple Choice

Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long?

• A)The collection cost would be reduced.
• B)The company may offer sales discounts to shorten the collection period.
• C)Cash flows from operations may be higher than expected for the company's sales.
• D)The company should expand operations with its excess cash.

Identify the advantages of using cloud-based accounting software like QBO for real-time data access and management.

Understand the concept of bounded rationality and its implications on decision-making.

Comprehend the role and impact of change competency in organizational risk management.

Recognize the significance of adopting new technologies in reducing errors and improving efficiency.

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Definitions:

Liquidation

The process of converting assets into cash or cash equivalents by selling them, often used to pay off debts.

Partnership

A legal arrangement in business where management duties and financial gains are divided among two or more participants.

Business Operations

Activities involved in the day-to-day functions of a business related to producing and delivering its goods and/or services.

Noncash Assets

Assets that are not in the form of cash or easily convertible into cash, such as real estate, equipment, and investments.