To reduce the time and expense of collecting their accounts receivable, some firms
A) extend credit to new customers.
B) offer extended payment plans to existing customers.
C) adopt a just-in-time inventory policy.
D) accept bank credit cards.

Question

Quizplus · Accepted Answer

Accepting bank credit cards can significantly reduce the time and expense of collecting accounts receivable. When customers pay with a credit card, the responsibility for collecting payment shifts to the credit card company, which typically remits payment to the seller within a few business days. This eliminates the need for the seller to create and send invoices, wait for payment, and chase down late payments. Additionally, accepting credit cards can improve customer convenience and satisfaction, potentially increasing sales and customer loyalty.

To Reduce the Time and Expense of Collecting Their Accounts