Which of the following is NOT commonly regarded as being a credit policy variable? * Collection policy. Cash discounts. Payments deferral period. O Credit period. O Credit standards.
Which of the following is NOT commonly regarded as being a credit policy variable? * Collection policy. Cash discounts. Payments deferral period. O Credit period. O Credit standards.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 15PB: Shimmer Products is considering which bad debt estimation method works best for its company. It is...
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Question
![Which of the following statements is
most correct? *
An aging schedule is used to determine
what portion of customers pay cash and
what portion buy on credit.
If a firm changes its credit terms from 1/20,
net 40 days, to 2/10, net 60 days, the impact
on sales can't be determined because the
increase in the discount is offset by the
longer net terms, which tends to reduce
sales.
Aging schedules can be constructed from
the summary data provided in the firm's
financial statements
If a firm's volume of credit sales declines
then its DSO will also decline.
The DSO of a firm with seasonal sales can
vary. While the sales per day figure is
usually based on the total annual sales, the
accounts receivable balance will be high or
low depending on the season.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feda765a7-8441-40a0-9b13-cc03eaf2cf6e%2F42dea709-b5d0-4b38-94d9-688536054c57%2F433il9g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following statements is
most correct? *
An aging schedule is used to determine
what portion of customers pay cash and
what portion buy on credit.
If a firm changes its credit terms from 1/20,
net 40 days, to 2/10, net 60 days, the impact
on sales can't be determined because the
increase in the discount is offset by the
longer net terms, which tends to reduce
sales.
Aging schedules can be constructed from
the summary data provided in the firm's
financial statements
If a firm's volume of credit sales declines
then its DSO will also decline.
The DSO of a firm with seasonal sales can
vary. While the sales per day figure is
usually based on the total annual sales, the
accounts receivable balance will be high or
low depending on the season.
![Which of the following is NOT
commonly regarded as being a credit
policy variable? *
O Collection policy.
Cash discounts.
Payments deferral period.
O Credit period.
O Credit standards.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feda765a7-8441-40a0-9b13-cc03eaf2cf6e%2F42dea709-b5d0-4b38-94d9-688536054c57%2Fdty1kd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following is NOT
commonly regarded as being a credit
policy variable? *
O Collection policy.
Cash discounts.
Payments deferral period.
O Credit period.
O Credit standards.
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