To Reduce the Time and Expense of Collecting Accounts Receivables,some

question 57

Multiple Choice

To reduce the time and expense of collecting accounts receivables,some firms:

• A)accept bank-issued credit cards.
• B)adopt a just-in-time inventory policy.
• C)extend credit to new customers.
• D)offer extended payment plans to existing customers.

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Definitions:

Merchantability

A warranty implied by law that goods sold by a merchant are fit for the general purpose for which they are sold.

Remedy Limitation

Restrictions or caps placed on the type or amount of compensation that can be received in a legal claim or lawsuit.

Unconscionable

A term describing actions or terms that are so unjust or overwhelmingly one-sided in favor of the party who has the superior bargaining power.

Express Warranty

An explicit guarantee by the seller about the condition or quality of a product.