An increase in sales resulting from an increased cash discount for prompt payment would be expected to cause PDF

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Accounting quizzers...

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1. An increase in sales resulting from an increased cash discount for prompt payment would be expected to cause: a. An increase in the operating cycle cycle b. An increase in the average collection period taken

c. A decrease in the cash conversion d. A decrease in purchase discounts

2. If a firm had been extending trade credit on a 2/10, net/30 basis, what change would be expected on the balance sheet of its customer if the firm went to a net cash 30 policy? a. Increase payables and increased bank loan b. Increased receivables

c. Decreased receivables d. Decrease in cash...