Which of the following is not a consequence of too high a level of accounts receivable?
A)Higher financing cost on money needed to support the higher level of current assets
B)Larger bad debt losses
C)Poorer relations with customers
D)A reputation of having a poor collection policy
E)c and d

Question

Quizplus · Accepted Answer

C) Poorer relations with customers and D) A reputation of having a poor collection policy are not direct consequences of too high a level of accounts receivable. Instead, high accounts receivable can lead to higher financing costs and larger bad debt losses, but not necessarily to poorer customer relations or a reputation for poor collection policies. These outcomes are more related to how the collections are managed, rather than the level of accounts receivable itself.

Which of the Following Is Not a Consequence of Too