A company's investment in accounts receivable is determined by the company's level of sales,percent of credit sales to total sales,and credit and collection policies.

Question

Quizplus · Accepted Answer

The investment in accounts receivable is influenced by the factors mentioned in the statement. The higher the level of sales, the more the company will have invested in accounts receivable. Additionally, the percentage of credit sales to total sales will also affect the level of investment in accounts receivable. Finally, the company's credit and collection policies will influence the investment in accounts receivable by establishing how long customers have to pay their invoices and how effective the company's collection processes are.

A Company's Investment in Accounts Receivable Is Determined by the Company's