Answer:
(a) Operating income will increase.
(b) Effect on the operating cash flow is an increase.
Explanation:
The answers above depend on the volume of sales, if a comparative analysis is done. If volume of credit sales was low when the rate was 2%, and now that it is reduced the credit sales increases significantly, the bad debt expense in this cash might be minutely different.
Definitely, operating income and operating cash flows will increase in absolute terms since lower bad debt expense rate is applied on credit sales.
Answer:
compliance controls for legal mandates is not one of the foundational reasons for using and enforcing security policies.
Answer:
B. The balance of payments is favorable
Explanation:
Answer:
The 3 represents the percentage of cash discount. It means the cardholder will receive a 3% discount if the bill is paid within 15 days from the billing date.
Answer: B. shifts the budget constraint outward
Explanation:
An increase in the income of a consumer will bring about an outward shift of the budget constraint. This is because when the income of a consumer rises, such consumer can buy more goods and services.
Also, a decrease in income will result into an inward shift of the budget constraint. This is because lesser goods are purchased.