Reference no: EM131923776

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