The level of investment in accounts receivable depends on:
A)credit analysis
B)credit terms
C)collection efforts
D)all the above
E)none of the above

Question

Quizplus · Accepted Answer

The level of investment in accounts receivable depends on credit analysis, credit terms, and collection efforts. Credit analysis helps to determine the creditworthiness of customers and their ability to pay. Credit terms dictate when payments are due, and collection efforts ensure timely payments and minimize overdue accounts. All three factors contribute to the level of investment a company needs in accounts receivable.

The Level of Investment in Accounts Receivable Depends On