Suppose a Firm Changes Its Credit Policy from 2/10 Net

question 65

True/False

Suppose a firm changes its credit policy from 2/10 net 30 to 3/10 net 30.The change is meant to meet competition, so no increase in sales is expected.The average accounts receivable balance will probably decline as a result of this change.

---

Definitions:

Hypotheses

Proposed explanations or predictions for specific phenomena, typically based on limited evidence, to be tested through further investigation.

Tentative Explanations

Preliminary hypotheses or guesses made to explain a phenomenon, subject to further confirmation or refutation.

Scientifically Tested

The evaluation or investigation of a hypothesis, theory, or product through rigorous and controlled experiments to establish its validity or efficacy.

Theories

Systematically organized knowledge applicable in a relatively wide variety of circumstances, especially a system of assumptions, accepted principles, and rules of procedure to analyze, predict, or otherwise explain the nature or behavior of a specified set of phenomena.