Asked by
MARLIE LESKA
on Nov 07, 2024
Verified
Which of the following is the best definition of a collection policy.
A) A compilation of accounts receivable by the age of each account.
B) Wholly owned subsidiary that handles credit extension and receivables financing through commercial paper.
C) A discount given for a cash purchase.
D) Procedures followed by a firm in collecting accounts receivable.
E) Conditions on which a firm sells its goods and services for cash or credit.
Collection Policy
Procedures followed by a firm in collecting accounts receivable.
Accounts Receivable
Money owed to a company by its customers for products or services that have been delivered but not yet paid for.
Credit Extension
The practice of providing borrowers additional time to pay off existing debts, often involving modified repayment terms or agreements.
- Determine the primary aspects of a business's credit evaluation and collections policy.
Verified Answer
JL
Learning Objectives
- Determine the primary aspects of a business's credit evaluation and collections policy.