Which of the following changes would result in higher receivables?
A)Tightening credit policy
B)An increase in the net period of the terms of sale
C)An increase in the prompt payment discount offered
D)All of the above

Question

Quizplus · Accepted Answer

Increasing the net period of the terms of sale would mean that customers have more time to pay, resulting in higher receivables. Tightening credit policy would mean fewer customers qualifying for credit, and offering prompt payment discounts would encourage faster payment, both of which would lead to lower receivables.

Which of the Following Changes Would Result in Higher Receivables