A Large Manufacturing Firm Has Been Selling on a 3/10

question 105

Multiple Choice

A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What change might be expected on the balance sheets of its customers?

• A)Decreased receivables and increased bank loans
• B)Increased receivables and increased bank loans
• C)Increased payables and decreased bank loans
• D)Increased payables and increased bank loans

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Definitions:

Collaborate

To work jointly with others or together, especially in an intellectual endeavor.

Communication Situation

The context or environment in which information is exchanged between communicators, including factors like medium, participants, and purpose.

Recipients

Individuals or entities that receive something, such as a message, email, award, or payment.

Indirect Approach

A communication strategy that aims to address issues or communicate messages in a more roundabout or subtle manner.