1. Which theory is the most correct: "Allowing customers to make payment after they have received their items" is:

(a) It is essential as it can help the company to earn more market share

(b) This practice is usual as it has been practised in various industries

(c) This practice is sloppy when you are running a business

(d) This practice is dangerous when you are running a business

2. A Inn has an extremely short operating cycle. It is likely to be:

(a) Not proper as the accounts receivables should be high.

(b) Not proper as the accounts receivables and accounts payable should balance each other out.

(c) Proper because accounts payable can be extremely high.

(d) Proper because it may have a low inventory level and almost do not have any accounts receivables.