Table 15.6
A breakdown of Teffan, Inc.'s outstanding accounts receivable dated June 30, 2014 on the basis of the month in which the credit sale was initially made follows. The firm extends 30-day credit terms.
-An evaluation of the firm's collection efforts based on the aging schedule would suggest ________. (See Table 15.6)
A) poor credit management
B) satisfactory credit management
C) superior credit management
D) overzealous collection efforts

Question

Table 15.6
A breakdown of Teffan, Inc.'s outstanding accounts receivable dated June 30, 2014 on the basis of the month in which the credit sale was initially made follows. The firm extends 30-day credit terms. 
-An evaluation of the firm's collection efforts based on the aging schedule would suggest ________. (See Table 15.6)
A) poor credit management 
B) satisfactory credit management 
C) superior credit management 
D) overzealous collection efforts

Quizplus · Accepted Answer

The aging schedule shows that a significant portion of the firm's accounts receivable are overdue, indicating poor credit management.

Table 15.6 A Breakdown of Teffan, Inc.'s Outstanding Accounts Receivable Dated June