6. ABC Co. is considering granting credit to a new corporate customer. ABC is concerned about the new customer's credit history. ABC would likely find each of the following useful EXCEPT A. The customer's financial statements. B. A Dun & Bradstreet report. C. A Credited report. D. An aging of ABC's receivables. E. A credit report from the customer's bank. 7. Which one of the following will increase the average balance in accounts receivable? A. A decrease in the discount period. B. Cash sales as an increased percentage of total sales. C. A decrease in the firm's cheque processing tim D. An increase in the sales amount per customer. E. A decrease in the trade discount. 8. Which one of the following statements is correct? A. If the majority of your new customers become repeat customers then there is a strong argument against extending credit even if the default rate is low. B. A customer's past payment history is not indicative of their future payment history. C. A suggested policy for offering credit to new customers is to limit their initial credit purchase. D. The risk of issuing credit is the same for a new customer as it is for an existing customer. E. The recommended credit policy for new customers is to extend the maximum amount you are willing to ever extend to that customer as their initial credit limit. 9. The net credit period: A. Is the length of time after the discount period that a customer has to pay the full amount of the invoice. B. Generally is between 15 and 150 days. C. Begins on the invoice date and ends on the final day a customer can pay without being delinquent. D. Is established based on the seller's operating cycle. E. is determined by the seller's inventory period. 10. Which of the following would NOT be a part of an EOQ model of inventory management? A. Shortage costs. B. Carrying costs. C. Receivable costs. D. Reorder points. E. Safety stocks