Which of the Following Statements Is NOT Correct

question 35

Multiple Choice

Which of the following statements is NOT correct?

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

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Definitions:

Duty To Warn

The legal obligation to inform others of a known danger or risk to prevent harm.

High Blood Pressure

A medical condition in which the force of the blood against the artery walls is too high, often leading to health problems.

Over-The-Counter Drug

Medications that are legally sold directly to consumers without a prescription from a healthcare professional.

Risk-Utility Test

A legal principle used to determine if the design of a product is defective by weighing the product's risk against its utility or benefit.