Which of the following is true if a firm wishes to collect its accounts faster by imposing stricter credit terms on its customers?
A) the firm's average collection period is likely to fall
B) the firm's accounts receivable turnover might rise
C) the firm's sales might decrease
D) all of the above

Question

Quizplus · Accepted Answer

Stricter credit terms can lead to a shorter average collection period (A), an increase in accounts receivable turnover (B), and potentially a decrease in sales as some customers may be deterred by the stricter terms (C).

Which of the Following Is True If a Firm Wishes