Quiz Ch 15 – T/F The Balance of Collection Policies: Shortening Collection Periods vs. Profit Considerations

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: A company's collection policy, the methods it employs to collect accounts receivable, is vital in maintaining a short average collection period. However, an excessively strict collection policy can lead to profit reduction due to lost sales.

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