What does an increasing collection period foraccounts receivable suggest about a firm's creditpolicy?Select one:O A. The collection period has no relationship to afirm's credit policyO B. The firm is probably losing qualifiedcustomers.C. The credit policy may be too lenient.O D. The credit policy is too restrictive.

The credit policy of a firm means the policies and conditions attached to lending goods and services…

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What does an increasing collection period for accounts receivable suggest about a firm's credit policy?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 11QTD

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Question

What does an increasing collection period for
accounts receivable suggest about a firm's credit
policy?
Select one:
O A. The collection period has no relationship to a
firm's credit policy
O B. The firm is probably losing qualified
customers.
C. The credit policy may be too lenient.
O D. The credit policy is too restrictive.

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