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

question 16

Multiple Choice

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

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

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Definitions:

Going Wage Rate

The average or standard amount of pay offered for a particular job in a specific area or industry.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied.

Economic Rent

The excess payment made to or for a factor of production over and above what would be needed to move it to its next best use.

Wage Rate

The standard amount of compensation given to employees per unit of time worked, often expressed as an hourly rate or annual salary.