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V3ngeful Emp3ror
on Dec 09, 2024

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JJJ, Inc. recently extended its credit period from net 30 days to net 40 days. This represents a change in the firm's ______________.

A) collection policy
B) terms of sale
C) receivables policy
D) credit-granting policy
E) loan policy

Collection Policy

The set of guidelines a company uses to monitor and manage the collection of accounts receivable or owed debts.

Receivables Policy

A set of guidelines a company follows to manage its accounts receivable, including credit terms, collection methods, and credit limits.

Credit-Granting Policy

A set of guidelines that a lender uses to determine whether to extend credit to borrowers and on what terms.

  • Master the concepts of effective credit policy and its consequences on a firm's financial well-being.
  • Understand the ramifications of credit policy shifts on customer payment conduct and the financial condition of the enterprise.
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Zhanna Mae ParallagDec 11, 2024
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