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

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Definitions:

Meals Served

The total number of individual portions or servings of food provided or sold, typically used in the context of catering or hospitality.

Donations

Voluntary gifts or contributions of money or goods to organizations or individuals, often for charitable purposes.

Revenue Variance

The difference between a company's actual revenue and its expected or budgeted revenue during a specific period.

Spending Variances

Differences between budgeted and actual expenditures in various categories, often analyzed in budgeting to understand financial performance.