Which One of the Following Is NOT One of the Three

question 40

Multiple Choice

Which one of the following is NOT one of the three steps involved in establishing a credit policy?

• A)establishing a collection policy
• B)establishing credit terms
• C)establishing credit payment patterns
• D)establishing credit standards

---

Definitions:

Cash Investments

Funds placed into financial instruments or assets with the expectation of preserving capital and generating a return.

Capital

The wealth in the form of money or assets owned by an individual or organization, available for investment.

Assets

Resources owned or controlled by a business that are expected to bring future economic benefits.

Recorded

The act of documenting transactions or events in financial records or other types of logs.