Ned Sdn Bhd's trade receivable days have been getting shorter in recent years. Which of the following actions is likely to result in trade receivables days getting longer? A Negotiating longer credit terms with the company's main customer. B Decreasing inventory levels. C Sending reminder letters as soon as the debt is due. D Offering a discount for prompt payment.
Ned Sdn Bhd's trade receivable days have been getting shorter in recent years. Which of the following actions is likely to result in trade receivables days getting longer? A Negotiating longer credit terms with the company's main customer. B Decreasing inventory levels. C Sending reminder letters as soon as the debt is due. D Offering a discount for prompt payment.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 5QTD
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Question
Ned Sdn Bhd's trade receivable days have been getting shorter in recent years. Which of the following actions is likely to result in trade receivables days getting longer?
A
|
Negotiating longer credit terms with the company's main customer.
|
B
|
Decreasing inventory levels.
|
C
|
Sending reminder letters as soon as the debt is due.
|
D
|
Offering a discount for prompt payment.
|
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