Which of the following is NOT correct? a) A more aggressive collection policy wi

ID: 2635396 • Letter: W

Question

Which of the following is NOT correct?

a) A more aggressive collection policy will reduce bad debt expenses, but my also decrease sales

b) Collection policy usually has little impact on sales since collecting past-due accounts occurs only after the consumer has already purchased

c) Typically a firm will turn over an account to a collection agency only after it has tried several times on its own to collect the account

d) A tax collection policy will frequently lead to an increase in accounts receivable

e) Collection policy is how a firm goes about collecting past-due accounts

The correct answer is option D = A tax collection policy will frequently lead to an increase in accounts receivable.

Hope my solution solves your query.

Regards.

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