Determining the Effects of Credit Policy Changes on Receivables Turnover Ratio Indicate the most likely effect of
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Indicate the most likely effect of the following changes in credit policy on the receivables turnover ratio (+ for increase, − for decrease, and NE for no effect).
a. Granted credit with shorter payment deadlines.
b. Increased effectiveness of collection methods.
c. Granted credit to less creditworthy customers.
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