Multiple Choice
A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. 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) increased payables and decreased bank loans
D) increased payables and increased bank loans
Correct Answer:
Verified
Correct Answer:
Verified
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