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
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.