If a firm's credit period is decreased, the sales volume, the investment in accounts receivable, and the bad debt expenses can be expected to increase.

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If the firm's credit period is decreased, it means that customers have less time to pay their bills. This can lead to a decrease in sales volume as customers may choose to take their business elsewhere if they are unable to make timely payments. Additionally, reducing the credit period can also lead to a decrease in the investment in accounts receivable as customers are paying sooner. While bad debt expenses may decrease due to the shorter credit period, it is not certain as customers who are unable to pay on time may still default on their payments leading to bad debt expenses. Therefore, the statement is false.

If a Firm's Credit Period Is Decreased, the Sales Volume