Which of the Following Is the Best Definition of a Collection

question 379

Multiple Choice

Which of the following is the best definition of a collection policy.

• A) A compilation of accounts receivable by the age of each account.
• B) Wholly owned subsidiary that handles credit extension and receivables financing through commercial paper.
• C) A discount given for a cash purchase.
• D) Procedures followed by a firm in collecting accounts receivable.
• E) Conditions on which a firm sells its goods and services for cash or credit.

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Definitions:

Thorac/o

A prefix used in medical terms related to the chest or thoracic part of the body.

Trache/o

A combining form used in medical terms that relates to the trachea, the large airway leading from the larynx to the lungs.

Bronch/o

A combining form denoting relation to the bronchi, the major air passages of the lungs.

Laryng/o

A prefix related to the larynx or voice box, often used in medical terminology.