A firm's credit policy consists of which of the following items?
A) Credit period, cash discounts, credit standards, collection policy.
B) Credit period, cash discounts, receivables monitoring, collection policy.
C) Cash discounts, credit standards, receivables monitoring, collection policy.
D) Credit period, receivables monitoring, credit standards, collection policy.
E) Credit period, cash discounts, credit standards, receivables monitoring.

Question

Quizplus · Accepted Answer

A firm's credit policy typically includes the credit period (the length of time customers are given to pay their bills), cash discounts (reductions in price to encourage early payment), credit standards (criteria used to determine which customers are offered credit), and collection policy (procedures for collecting overdue accounts).

A Firm's Credit Policy Consists of Which of the Following