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An increase in sales collections resulting from an increased cash discount for prompt payment would be expected to cause a (n):
Suggested Answer: C
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Choice 'c' is correct. An increase in sales collections would decrease the cash conversion cycle.
Choice 'a' is incorrect because the operating cycle (as well as the cash conversion cycle) would decrease.
Choice 'b' is incorrect, as the average collection period would decrease.
Choice 'd' is incorrect. Bad debt losses would decrease from an increase in sales collections.
9 comments · newest first
TE
Teresita
11 months ago
I think it could increase bad debt losses if not managed well.
DE
Devora
12 months ago
Definitely a decrease in the cash conversion cycle!
AL
Alex
12 months ago
Wait, are we sure about that? Sounds too good to be true.
CA
Cassandra
12 months ago
Totally agree, it should decrease the cash conversion cycle.
KA
Katy
1 year ago
Cash discounts usually speed up collections!
BI
Billy
1 year ago
Hmm, I'm a bit unsure about this one. The defects all seem related to buying a bus ticket, but I'll need to think carefully about which one is truly out of scope.
CE
Celestine
1 year ago
This is a tricky one. There are a lot of moving parts, and I want to make sure I don't miss anything important. I'm leaning towards option D since it seems to have the most comprehensive set of viewpoints to tackle the key concerns, but I'll double-check the details of each choice to be sure.
RE
Refugia
1 year ago
Hmm, this seems like a networking question. I'll need to think carefully about the different entities used in networking devices.
LA
Lachelle
1 year ago
Hmm, this seems like a straightforward question about entity ownership. I'll need to think carefully about the requirements - transactional data and association with business units. That should help me determine the best ownership type.