A Firm's Collection Policy, I

question 127

True/False

A firm's collection policy, i.e., the procedures it follows to collect accounts receivable, plays an important role in keeping its average collection period short, although too strict a collection policy can reduce profits due to lost sales.

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Definitions:

Values

Fundamental beliefs or standards of behavior that guide decisions and actions.

Beliefs

are convictions or acceptances that something exists or is true, especially without proof.

Decision Process

The sequence of cognitive steps taken by individuals or groups in selecting among alternatives to make a decision.

Traveling

The act of moving from one place to another, which can be for various purposes including leisure, business, or exploration.