The Effective Management of Accounts Receivable Requires Financial Managers to

question 77

Multiple Choice

The effective management of accounts receivable requires financial managers to

• A) review the credit history of new customers.
• B) provide prompt cash payments to suppliers.
• C) allow customers more time in paying their past due accounts.
• D) refuse bank-issued credit cards.

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, aimed at standardizing laws across states.

Sale of Goods

A transaction in which ownership of physical products is transferred from a seller to a buyer for payment.

Partial Performance

The situation where a party has completed some, but not all, of their contractual obligations.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjury in contractual dealings.