Indicate by a (+), (-), or (0) whether each of the following events would most likely cause A/R, sales, and profits to increase, decrease, or be affected in an indeterminate manner. Also provide an explanation for each event and the affects.

AR Sales Profit

a. The firm tightens its credit standards. ___ ___ ___

b. The firm loosens its credit standards. ___ ___ __

c. The credit terms are changed from

2/10 net 30, to 3/10, net 45. ___ ___ ___

d. The credit manager gets tough with

past-due accounts. ___ ___ ___

Explanations: