Which one of the following actions will tend to increase the accounts receivable period from its current 14 days?
A) Tightening the standards for granting credit to customers
B) Refusing to grant additional credit to any customer who pays late
C) Increasing the finance charges applied to all customer balances outstanding over 30 days
D) Granting discounts for cash sales
E) Eliminating the discount for early payment by credit customers

Question

Quizplus · Accepted Answer

Eliminating the discount for early payment by credit customers will discourage them from paying early, leading to a longer accounts receivable period.

Which One of the Following Actions Will Tend to Increase