Question A14 A business has seen its trade receivable days increase from 32 days to 45 days over the past year, which of the following would not be an action the business should consider to reduce the trade receivable days. A Credit checks for new customers being taken on by the business B Having regular contact with suppliers to maintain close relationships C Having a robust credit control procedure including a review of aged debts with prompt action on late payments D Make credit terms clear on all invoices
Question A14 A business has seen its trade receivable days increase from 32 days to 45 days over the past year, which of the following would not be an action the business should consider to reduce the trade receivable days. A Credit checks for new customers being taken on by the business B Having regular contact with suppliers to maintain close relationships C Having a robust credit control procedure including a review of aged debts with prompt action on late payments D Make credit terms clear on all invoices
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question A14
A business has seen its trade receivable days increase from 32 days to 45 days over the past year, which of the following would not be an action the business should consider to reduce the trade receivable days.
A
Credit checks for new customers being taken on by the business
B
Having regular contact with suppliers to maintain close relationships
C
Having a robust credit control procedure including a review of aged debts with prompt action on late payments
D
Make credit terms clear on all invoices
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