Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 10QTD
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Question
![Item 15 of 25
An objective of accounts receivable management is to have both the optimal amount of receivables outstanding and bad depts. This balance requires the trade-off between the benefit of more credit
sales and
Select the correct response:
O cost of sales
O cost of accounts receivable
O high accounts receivable turnover
O more bad debts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe95782c3-89e3-402a-a5a1-41dbd8c9bcd5%2Fa600bb7f-c8f0-41bb-ba97-c2131016dc25%2Fdq099y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Item 15 of 25
An objective of accounts receivable management is to have both the optimal amount of receivables outstanding and bad depts. This balance requires the trade-off between the benefit of more credit
sales and
Select the correct response:
O cost of sales
O cost of accounts receivable
O high accounts receivable turnover
O more bad debts
![Item 14 of 25
A firm following an aggressive working capital strategy would
Select the correct response:
Minimize the amount of short-term borrowing
Finance fluctuating assets with long-term financing.
Minimize the amount of funds held in very liquid assets.
Hold substantial amount of fixed assets.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe95782c3-89e3-402a-a5a1-41dbd8c9bcd5%2Fa600bb7f-c8f0-41bb-ba97-c2131016dc25%2F1xsd3lb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Item 14 of 25
A firm following an aggressive working capital strategy would
Select the correct response:
Minimize the amount of short-term borrowing
Finance fluctuating assets with long-term financing.
Minimize the amount of funds held in very liquid assets.
Hold substantial amount of fixed assets.
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