Question: Indicate by a (+), (), or (0) whether each of the following events would probably cause accounts receivable (A/R), sales, and profits to increase, decrease,
Indicate by a (+), (−), or (0) whether each of the following events would probably cause accounts receivable (A/R), sales, and profits to increase, decrease, or be affected in an indeterminate manner:
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A/R Sales Profits The firm tightens its credit standards The terms of trade arc changed rom 2/10, net 30, to 3/10, net 30 The ters are changed rom 2/10, net 30, to 3/10, net 40 The credit manager gets tough with past-due accounts.
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Explanations a When a firm tightens its credit standards it sells on credit more selectively It will ... View full answer
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