Indicate using a , − , or 0 whether each of the following events would probably cause accounts receivable (A/R), sales, and profits to increase, decrease, or be affected in an indeterminate manner:

A/R Sales Profits The firm restricts its credit standards. ______________ ______________ ______________ The terms of trade are changed from 2/10, net 30, to 3/10, net 30. ______________ ______________ ______________ The terms are changed from 2/10, net 30, to 3/10, net 40. ______________ ______________ ______________ The credit manager gets tough with past-due accounts. ______________ ______________ ______________.

AppendixL01