The policy variables a firm can use to control the level of receivables include:
A)credit policy.
B)terms of sale.
C)collection efforts.
D)All of the above

Question

Quizplus · Accepted Answer

All of the above policy variables - credit policy, terms of sale, and collection efforts - can be used by a firm to control the level of receivables. The credit policy determines which customers are offered credit, the terms of sale dictate the payment terms offered to customers, and collection efforts involve chasing up overdue payments. By managing these variables effectively, a firm can minimize its level of accounts receivable and improve its cash flow.

The Policy Variables a Firm Can Use to Control the Level