Asked by Adarsh Prasad on Jun 26, 2024
Verified
Which of the following is NOT commonly regarded as being a credit policy variable?
A) credit period
B) collection policy
C) cash discounts
D) payments deferral period
Credit Policy Variable
An element that defines the guidelines under which credit is extended to customers, including terms of payment and interest rates.
Credit Period
The duration of time a buyer is allowed to pay for goods or services received, before interest or penalties begin accruing.
Collection Policy
The specific strategies and methods a company uses to manage the collection of its accounts receivable.
- Acknowledge the implications of different credit policy variables and their impact on a firm's cash flows and customer behavior.
Verified Answer
Learning Objectives
- Acknowledge the implications of different credit policy variables and their impact on a firm's cash flows and customer behavior.
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