All of the following are possible solutions to a large bad-debt loss ratio EXCEPT:
A)Loosening credit
B)Offering cash discounts for prompt payment
C)Seasonal datings
D)Determine creditworthiness of customers

Question

Quizplus · Accepted Answer

Loosening credit would only increase the bad-debt loss ratio, as it would increase the number of customers who default on their payments. The other options can help address and reduce bad debt by ensuring that credit is only extended to creditworthy customers (D), encouraging prompt payment (B), and offering payment terms that align with customers' cash flows (C).

All of the Following Are Possible Solutions to a Large