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    Intermediate Financial Management Study Set 2
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    Exam 21: Working Capital Management
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    A Firm Changes Its Credit Policy from 2/10, Net 30
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A Firm Changes Its Credit Policy from 2/10, Net 30

Question 105

Question 105

True/False

A firm changes its credit policy from 2/10, net 30, to 3/10, net 30. The change is meant to meet competition, so no increase in sales is expected. Average accounts receivable will probably decline as a result of this change.

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