The Effect of a Change in a Firm's Credit Terms

question 45

Multiple Choice

The effect of a change in a firm's credit terms from "net 30" to "2/10, net 30" on its customers' balance sheets is likely to be ____.

• A) decreased accounts receivable
• B) increased accounts receivable
• C) decreased accounts payable
• D) increased accounts payable

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Definitions:

Main Effect

The direct influence of an independent variable on a dependent variable in an experimental study, ignoring the effects of other variables.

Marginal Means

The average value of a variable at each level of another variable, often used in the analysis of variance.

Main Effect

The direct impact of an independent variable on a dependent variable, ignoring other potential influencing factors.

Significant

In statistics, it refers to results that are unlikely to have occurred by chance alone, according to a predefined threshold of probability (the significance level).