A Credit Collection Policy Is Likely to Include

question 23

Multiple Choice

A credit collection policy is likely to include:

• A) various actions to be taken after a debt has been outstanding for 30, 45, 60, 75, or 90 days.
• B) public announcements which identifies the customer who has refused to pay their debt.
• C) physical intimidation after customer refusals to pay.
• D) forced jail time if debts are not paid.

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Definitions:

Expense Recognition Principle

An accounting principle that directs the recognition of expenses in the same period as the related revenues.

Actual Cost

The actual expense incurred to acquire an asset or the expense incurred to produce goods or services, as opposed to budgeted or estimated costs.

Full Disclosure Principle

A financial reporting guideline requiring companies to disclose all relevant and necessary information in their financial statements and footnotes to help users make well-informed decisions.

Financial Statements

Official documentation reflecting the monetary transactions and status of a company, individual, or different entity.