Asked by
Francisco Azevedo
on Dec 01, 2024Verified
Which of the following changes would result in higher receivables?
A) Tightening credit policy
B) An increase in the net period of the terms of sale
C) An increase in the prompt payment discount offered
D) All of the above
Net Period
The timeframe between the issuance of an invoice and the due date for payment, often referred to in terms of net 30, net 60, etc.
Prompt Payment Discount
A discount offered to customers for paying their invoices early, serving as an incentive for quicker payment.
- Identify various strategies for handling accounts receivable and their effects on a company's financial health.
Verified Answer
SM
Learning Objectives
- Identify various strategies for handling accounts receivable and their effects on a company's financial health.