One of the Policies for Managing Customer Credit Requires Business

question 53

True/False

One of the policies for managing customer credit requires business owners to maintain constant "aging" of accounts to quickly identify customers who become delinquent.

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Definitions:

Unrealized Gain

An increase in the fair value of equity or debt securities for a period.

Available-for-Sale

A classification for investments in debt or equity securities not classified as held-to-maturity or trading securities, marked to market with changes in fair value recorded in other comprehensive income.

Dividend Revenue

Income earned from owning shares in a company, typically distributed from the company's earnings.

Trading Securities

Financial instruments such as stocks or bonds that are purchased by a company with the intention of selling them in the short term to realize quick profits.