Common Ways to Speed Up Cash Flow from Accounts Receivable

question 68

Multiple Choice

Common ways to speed up cash flow from accounts receivable do not include

• A)offering customers a discount if they pay earlier than the due date.
• B)borrowing money using accounts receivable as collateral.
• C)accepting bank debit and credit cards in payment.
• D)increasing the payment period from 30 to 45 days.

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Definitions:

Capital Gains

The amount by which the sale price of a security exceeds the purchase price.

Systematic Risk

The risk inherent to the entire market or market segment that cannot be mitigated through diversification.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used in finance to quantify the risk of investment returns.

Security Market Line

A representation in financial economics that shows the relation between the risk of an asset and its expected return.