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

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Definitions:

Unrealized Gain

The hypothetical profit on an investment that has not yet been sold, and thus, not yet converted into actual cash.

Hedged Item

An asset, liability, or planned transaction exposed to price risks that are offset by using a hedging instrument.

Anticipated Transaction

A future financial operation or deal that is expected to occur.

Existing Asset

Assets that are currently in possession or use by a company, as opposed to newly acquired or disposed assets.