The Effective Management of Accounts Receivables Requires Financial Managers To

question 233

Multiple Choice

The effective management of accounts receivables requires financial managers to:

• A)review the credit history of new customers.
• B)provide prompt cash payments to suppliers.
• C)allow customers more time in paying their past due accounts.
• D)refuse bank-issued credit cards.

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Definitions:

Monetary Policy

The process by which a central bank controls the supply of money in an economy, often targeting interest rates to promote economic stability.

Fiscal Policy

A government's use of spending and taxation to influence the economy.

Aggregate Demand

The aggregate requirement for products and services in an economy at a specific general price point during a certain time frame.

Money Demand Curve

A graphical representation showing the relationship between the interest rate and the quantity of money that people want to hold.