Which of the Following Is Not Correct

question 9

Multiple Choice

Which of the following is not correct?

• A) Collection policy is how a firm goes about collecting past-due accounts.
• B) A more aggressive collection policy will reduce bad debt expenses, but may also decrease sales.
• C) Collection policy usually has little impact on sales since collecting past-due accounts occurs only after the customer has already purchased.
• D) Typically a firm will turn over an account to a collection agency only after it has tried several times on its own to collect the account.
• E) A lax collection policy will frequently lead to an increase in accounts receivable.

---

Definitions:

Activating Serotonin

The process of stimulating the release or action of serotonin, a neurotransmitter that contributes to feelings of well-being and happiness.

Binding

The process of physically or chemically linking two or more entities together, often used in biochemical contexts.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, typically improving alertness and energy.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, often used recreationally for its euphoric effects.