1. Which of the following is least likely a secondary source of liquidity?

A. Negotiating debt contracts.
B. Filing for bankruptcy protection and reorganization.
C. Not liquidating assets because of the related cost of giving up a company’s asset.


2. The industry average receivables collection period:

A. increased from 2012 to 2013.
B. decreased from 2012 to 2013.
C. did not change from 2012 to 2013.


3. Galaxy Chemicals Ltd. is increasing its credit terms for customers from 1/12, net 20 to 1/12, net50. The company will most likely experience:

A. an increase in cash on hand.
B. an increase in the average collection period.
C. a higher level of uncollectible accounts.


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