A Reasonable Amount of Uncollectible Accounts Is Evidence

question 96

Multiple Choice

A reasonable amount of uncollectible accounts is evidence

• A) that the credit policy is too strict.
• B) that the credit policy is too lenient.
• C) of a sound credit policy.
• D) of poor judgments on the part of the credit manager.

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Definitions:

Process Time

The amount of time required to complete a particular process in a production cycle.

Materials Cost

The expense associated with the raw materials used in the production of goods or services.

Capital Investment Analysis

The process by which management plans, evaluates, and controls investments in fixed assets.

Present Value

The value of an asset or cash at present that is equivalent in value to a specified sum in the future.