If an Account Receivable Becomes Past Due, the Best Strategy

question 93

True/False

If an account receivable becomes past due, the best strategy is simply to wait; statistics show that customers eventually pay their bills if business owners do not bother them with repeated collection attempts.

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Definitions:

Long-run

A period in which all factors of production and costs are variable, allowing firms to adjust all input levels and technology to find the most efficient scale of operations.

Excise Tax

A specific tax levied on the sale of particular goods or services, such as alcohol and tobacco, usually aimed at discouraging consumption or raising revenue.

Cost Curve

A graphical representation that shows the relationship between the total cost incurred by a firm and the level of output produced.