A Reasonable Amount of Uncollectible Accounts Is Evidence

question 108

Multiple Choice

A reasonable amount of uncollectible accounts is evidence

• A)that the credit policy is too strict.
• B)that the credit policy is too lenient.
• C)of a sound credit policy.
• D)of poor judgments on the part of the credit manager.

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Definitions:

Dividends

Disbursements issued by a company to its shareholders, often as an allocation of earnings.

Dividend Yield Ratio

A financial metric indicating the annual dividends a company distributes in comparison to its stock price.

Market Price

The market rate for buying or selling an asset or service at this time.

Common Stock

Equity shares of a corporation, representing ownership interest and giving shareholders voting rights and dividends.