Regularly Reviewing an Accounts Receivable Aging Report Can Help Management

question 55

Multiple Choice

Regularly reviewing an accounts receivable aging report can help management do what?

• A)identify customers who have not purchased anything lately
• B)determine whether changes are needed in the firm's credit policies
• C)improve the speed which customers make payments
• D)determine whether the firm's pricing policy is effective

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Definitions:

Credit Sales

Sales made by a business for which payment will be made at a later date, as opposed to immediate cash sales.

Confidence Interval

A confidence interval is a range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.

Standard Deviation

A statistical measure of the dispersion or spread of data points in a data set, indicating how much the individual data points differ from the mean.

Population Mean

The average of a set of characteristics or numbers in the entire population.