Which of the following major variables should be considered when evaluating proposed changes in credit standards?
A) level of inventories
B) accounts payable
C) level of liquid assets
D) bad debt expenses

Question

Quizplus · Accepted Answer

Bad debt expenses are directly related to credit standards, as changes in credit standards can impact the amount of bad debt expenses that a company incurs. The other variables listed may be important in evaluating a company's overall financial health, but are not directly related to credit standards.

Which of the Following Major Variables Should Be Considered When