Which of the Following Terms Best Describes the Types of Assets

question 41

Multiple Choice

Which of the following terms best describes the types of assets accounted for in governmental-type funds?

• A)any resource that can be used to provide service to the citizenry
• B)financial assets and capital assets
• C)current assets and movable fixed assets
• D)financial assets

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Definitions:

Collection Policy

The set of guidelines a company uses to monitor and manage the collection of accounts receivable or owed debts.

Receivables Policy

A set of guidelines a company follows to manage its accounts receivable, including credit terms, collection methods, and credit limits.

Credit-Granting Policy

A set of guidelines that a lender uses to determine whether to extend credit to borrowers and on what terms.

Credit Policy Effects

The impact of a company's credit policy on its cash flows, sales volume, and overall financial health, including aspects like credit terms and collection practices.