All of the following are methods of controlling receivables except
A) offering a cash discount.
B) reducing net terms.
C) using DBIS.
D) reducing cash sales.

Question

Quizplus · Accepted Answer

Reducing cash sales would not have an impact on controlling receivables since receivables are associated with credit sales, not cash sales. A, B, and C are all valid methods of controlling receivables. A cash discount can motivate customers to pay their bills faster. Reducing net terms shortens the time frame in which customers are expected to pay their bills. Using a credit scoring system like DBIS can help a company identify customers who are more likely to pay their bills on time and avoid extending credit to those who are not.

All of the Following Are Methods of Controlling Receivables Except