What Should a Company Do to Improve Its Accounts Receivable

question 85

Multiple Choice

What should a company do to improve its accounts receivable turnover rate?

• A) Lower its selling prices.
• B) Increase its sales force.
• C) Give customers credit terms of 2/10, n/30 rather than 1/10, n/30.
• D) Reduce the number of employees working in the credit department.

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Definitions:

Impulses

Sudden, involuntary urges to act, driven by internal or external stimuli.

Defense Mechanism

Unconscious tactics employed to shield oneself from the anxiety caused by thoughts or feelings deemed unacceptable.

Psychic Energy

In psychoanalytic theory, a form of energy that drives all human behavior, originating from innate biological instincts.

Psychoanalysis

A method of psychological therapy originated by Sigmund Freud focusing on exploring unconscious motives and conflicts.