Increasing the finance charges applied to all customer balances outstanding over thirty days will tend to decrease the accounts receivable period.

Name: Increasing the finance charges applied to all customer balances outstanding over thirty days will tend to decrease the accounts receivable period.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Increasing finance charges on late payments incentivizes customers to pay sooner, thus reducing the average time that receivables remain outstanding.

Increasing the Finance Charges Applied to All Customer Balances Outstanding