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Thompson Rentals Is Switching from an All Cash Policy to a Net

Question 360

Multiple Choice

Thompson Rentals is switching from an all cash policy to a net 30 day credit policy. As a result, the firm should expect:


A) To have an immediate decreased need for external financing.
B) An immediate increase in total production costs.
C) Total revenue to decrease.
D) Bad debts to decrease.
E) To lower their sales prices in order to retain current customers.

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