Which of the Following Terms Would Tend to Minimise a Firm's

question 121

Multiple Choice

Which of the following terms would tend to minimise a firm's investment in accounts receivable?

• A)Net 15
• B)Net 30
• C)1/15 net 45
• D)2/10 net 30

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Definitions:

Budgeting

The process of creating a plan to spend your money, outlining an organization's financial and operational goals.

Flexible Budget

A budgeting method that adjusts or scales according to the changes in activity or volume levels within a company.

Patient-Visits

The number of occasions when patients receive care from healthcare facilities or providers.

Static Planning Budget

A budget based on a fixed level of activity and does not change in response to variations in the level of actual activity.