To reduce the lag on collection of accounts receivable, a company might
A)offer a discount if customers pay quickly.
B)charge interest if customers delay payment.
C)use the accounts receivable as a basis for external financing.
D)sell only for cash.
E)all of the above

Question

Quizplus · Accepted Answer

Each option is a strategy to reduce the lag on collection of accounts receivable: A) incentivizes early payment, B) penalizes late payment, C) improves cash flow through financing, and D) eliminates receivables lag by requiring immediate payment.

To Reduce the Lag on Collection of Accounts Receivable, a Company