Which of the following changes in credit standards and terms would cause a decrease in profit? A) Decrease in customers taking advantage of the discount. B) Increase in average collection period days. C) Increase in units sold. D) Decrease in the % of uncollectible accounts

Which of the following changes in credit standards and terms would cause a decrease in profit? A) Decrease in customers taking advantage of the discount. B) Increase in average collection period days. C) Increase in units sold. D) Decrease in the % of uncollectible accounts

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

4.-
Which of the following changes in credit standards and terms would cause a decrease in profit?

A) Decrease in customers taking advantage of the discount.

B) Increase in average collection period days.

C) Increase in units sold.

D) Decrease in the % of uncollectible accounts.

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14 - Which of the following is the formula to compute accounts receivable turnover? a) The formula is net sales / average net accounts receivable. b) O The formula is cost of goods sold / average inventory The formula is net credit sales / average inventory. d) O The formula is average net accounts receivable / one day's sales.
Time left 0:53: All of the following statements are true EXCEPT: a. Ideally, a company should measure receivables in terms of their present value, that is, the discounted value of the cash to be received in the future. O b. Trade discounts are used to avdid freguent changes in catalogs and to alter prices for different quantities purchaseD. O c. In the net method, sales discounts are reported as a deduction from sales. O d. In the gross method, sales discounts are reported as a deduction from sales. Next page e
Which is correct with regards to the effects of restricting credit standards? a. Investment in accounts receivable will likely increase b. An increase in recognition of doubtful accounts expense will probably happen c. Positive impact on the net profit can be noted from decline in the quantity of goods sold d. Quantity of units sold will probably decrease and will result to a lower sales revenue
A high accounts receivable turnover ratio indicates A. customers are making payments quickly. B. the firm's sales have increased. C. a large portion of the firm's sales are on credit. D. many customers are not paying their receivables...
Which of the following increases the cash conversion cycle? A.A decrease in inventory turnover B.An increase in the cash discount C.An increase in accounts payable D.A decrease in inventory level
If a company faded to recognize the discount on non-interest-bearing notes receivable (unearned interest income credit). meaning the nite was recorded at face how would it affect the financial statements? A. the statement of changes in equity will not affect by this error? b. at the end of the year of issuance, the statement will be understand while the balance sheet will be overstated c. the income statement won't be enormous while the balance will be overstated d. the income statement will be understated while the balance sheet will not be enoneous.
Question Select three answers for changes in credit standards that are causes of changes in profits: A) Decrease in sales volume. B) Applying an aging analysis of balances C) Increase in contribution margin D) Increase in financial expenses due to an increase in the interest rate. E) Granting of discounts to incentivize prompt payment F) Increase in the investment in accounts receivable.
In the year after the Credit Card Act of 2009 was passed, there was a(n) [increase | decrease] in the use of debit cards relative to credit cards. a. increas b. decrease

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