Which of the Following Is Not Correct

question 31

Multiple Choice

Which of the following is not correct?

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

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Definitions:

Minimum Reward

The smallest incentive or compensation provided for a task or activity that still motivates behavior or participation.

Persuade

The act of convincing someone to do or believe something through reasoning or argumentation.

Logic

A systematic method of reasoning that aims to deduce valid conclusions from premises.

Good-looking Speaker

A speaker or presenter who is aesthetically pleasing or attractive in appearance.