A large manufacturing firm has been selling on a 3/10,net 30 basis.The firm changes its credit terms to 3.5/9,net 25.What change might be expected on the balance sheets of its customers?
A) Decreased receivables and increased bank loans.
B) Increased receivables and increased bank loans.
C) Decreased payables and increased bank loans.
D) Increased payables and increased bank loans.
Correct Answer:
Verified
Q35: Small businesses frequently find commercial paper a
Q51: The bank rate:
A) is the rate that
Q52: The London Interbank Offered Rate (LIBOR):
A) does
Q53: Securitized paper:
A) is not part of the
Q54: Mrs.Robinson borrows $5,000 for 90 days and
Q55: You are considering buying a new big
Q57: Your employer needs to borrow $550,000 to
Q58: The cost of forgoing the discount on
Q59: Mr.Phelps borrows $3,000 for 30 days and
Q60: The cost of forgoing the discount on
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents