Which of the Following Actions Would NOT Be Considered Good

question 19

Multiple Choice

Which of the following actions would NOT be considered good management of accounts receivable?

• A) assessing creditworthiness of new or potential customers
• B) very loose or flexible credit terms to encourage sales
• C) offering discounts to encourage faster payment
• D) regular aged receivables analysis

---

Definitions:

Fully Performed

A contractual term indicating that all obligations and duties outlined in the agreement have been completed by all parties involved.

Contract Terms

the specific provisions, conditions, and requirements laid out in a contract that define the obligations and rights of the parties involved.

Fair Market Value

The amount for which a property would be sold in an open market transaction, involving a ready seller and a ready buyer, both possessing adequate awareness of the pertinent details.

Recovery

The action of regaining possession or obtaining compensation for a loss.