A Firm's Credit Policy Consists of Which of the Following

question 12

Multiple Choice

A firm's credit policy consists of which of the following items?

• A) Credit period, cash discounts, credit standards, collection policy.
• B) Credit period, cash discounts, receivables monitoring, collection policy.
• C) Cash discounts, credit standards, receivables monitoring, collection policy.
• D) Credit period, receivables monitoring, credit standards, collection policy.
• E) Credit period, cash discounts, credit standards, receivables monitoring.

---

Definitions:

Gross Profit

The difference between revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.

Performance Analysis

The evaluation of the performance of a company, investment, or employee, often through the analysis of various financial metrics and ratios.

Profit Center

A segment or branch of a business responsible for generating its own revenue and profit.

Data Processing Department

A department within an organization that processes and manages data, turning raw data into usable information.