If One of Your Firm's Customers Is "Stretching" Its Accounts

question 44

True/False

If one of your firm's customers is "stretching" its accounts payable, this may be a nuisance but it does not represent a real financial cost to your firm as long as the customer periodically pays off its entire balance.

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Definitions:

Mental Illness

A broad category of conditions affecting a person’s thinking, emotion, and behavior, which may cause distress and difficulty in functioning.

Managed Care Programs

Health insurance plans that contract with healthcare providers and medical facilities to provide care for members at reduced costs and oversee the utilization of healthcare services.

Drug Therapy

The treatment of disease by administration of drugs or medications, with the intent to cure or reduce symptoms.

Psychogenic Causes

Refers to psychological factors that lead to physical symptoms or diseases, without any traceable physical cause.