Which of the following actions would NOT be considered good management of accounts receivable?
A) assessing creditworthiness of new or potential customers
B) very loose or flexible credit terms to encourage sales
C) offering discounts to encourage faster payment
D) regular aged receivables analysis

Question

Quizplus · Accepted Answer

Very loose or flexible credit terms can increase the risk of customers not paying on time or defaulting on their payments, which would negatively impact the business's cash flow and financial performance. Good management of accounts receivable involves balancing credit terms with creditworthiness assessments, regular aged receivables analysis, and incentives for prompt payment.

Which of the Following Actions Would NOT Be Considered Good