1.Which of the following credit and collections decisions would typically not in
ID: 2797361 • Letter: 1
Question
1.Which of the following credit and collections decisions would typically not increase the accounts receivable balance?
a.
extending credit to less creditworthy customers
b.
increasing the discount offered for prompt payment
c.
extending the time allowed for payment of a customer's bill
d.
delaying dunning letters from the credit department
e.
all of the above would typically increase the accounts receivable balance
2.More aggressive collection procedures should
a.
increase credit sales.
b.
decrease accounts receivable.
c.
increase ACP.
d.
all of the above
e.
none of the above
3.Relaxation of credit policy results in
a.
an increase in credit sales.
b.
a decrease in credit expenses.
c.
a decrease in investment in receivables.
d.
b and c
e.
all of the above
a.
extending credit to less creditworthy customers
b.
increasing the discount offered for prompt payment
c.
extending the time allowed for payment of a customer's bill
d.
delaying dunning letters from the credit department
e.
all of the above would typically increase the accounts receivable balance
Explanation / Answer
answer for 1 - E - all of the above would typically increase the accounts receivable balance
Answer to 2- E- none of the above because more aggressive collection procedure does not have any impact on credit sale
Answer to 3- A
an increase in credit sales because a relaxed credit policy means more credit sales and increase in receivables
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.