(Appendix 10A) a Firm Expects Credit Sales for the Week

question 21

Multiple Choice

(Appendix 10A) A firm expects credit sales for the week to amount to $3,000, accounts receivable to increase by $200, and accounts payable to decrease by $500. Given this information, what will be the effect on cash?

• A) $2,700 increase
• B) $2,300 increase
• C) $1,700 increase
• D) $1,300 increase

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Definitions:

Side Effects

Unintended and usually unfavorable responses to medication or treatment.

Colds

A viral infectious disease of the upper respiratory tract that primarily affects the nose, throat, sinuses, and larynx.

Indirect Contact

The transmission of pathogens or substances from one person to another through an intermediate object or person.

PID

Pelvic Inflammatory Disease, an infection of the female reproductive organs.