What does a decrease in Accounts Receivable days potentially indicate?

I. Improved collection procedures. II. The use of more liberal selling terms to promote sales. III. The use of more restrictive selling terms. IV. Increased competitive pressures in the marketplace.

a. III and IV only. b. IV only. c. I and III only. d. I only.

Which statement about Accounts Payable is correct?

a. They reflect sales made that are paid for in cash. b. They normally appear as current assets on the balance sheet. c. They arise from the purchases of such items as raw materials. d. They reflect amounts owed to a business by its customers.