Asked by Jaylee Field on Jul 15, 2024
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Loosening the standards for granting credit to customers will tend to decrease the accounts receivable period.
Standards
Established norms or requirements that are used as a basis for comparison or compliance.
Credit
A form of financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, typically with interest.
Accounts Receivable Period
Also known as the average collection period, it refers to the average number of days it takes a company to collect payments from its credit sales.
- Investigate the impact of implementing credit policies on the dynamics of cash flows and the temporal aspect of the cash cycle.
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Learning Objectives
- Investigate the impact of implementing credit policies on the dynamics of cash flows and the temporal aspect of the cash cycle.
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