The Goal of a Successful Credit Policy Is to Maximize

question 126

Multiple Choice

The goal of a successful credit policy is to maximize the potential profit on total credit sales while

• A) limiting credit losses to an acceptable level.
• B) minimizing the number of credit customers.
• C) keeping credit sales as low as possible.
• D) selling only to customers who will pay.

Recognize the importance of context such as company background, industry, and economic setting in analyzing financial statements.

Understand the methods and importance of horizontal and vertical analyses in evaluating financial performance and condition.

Comprehend the purpose and process of financial reporting for decision making.

Apply guidelines and rules-of-thumb in financial analysis.