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Murray Ltd's Trade Receivable Days Has Been Getting Longer and Longer

Question 8

Multiple Choice

Murray Ltd's trade receivable days has been getting longer and longer in recent years. Which of the following actions is NOT likely to result in an improvement in this ratio?


A) Offering a discount for prompt payment.
B) Sending reminder letters as soon as the debt is due.
C) Decreasing inventory levels.
D) Negotiating shorter credit terms with the company's main customer.

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