Receivables Management Quiz

Minimizing the amount of uncollectible debts owed to the company.

It establishes guidelines for extending credit to customers, including terms and conditions for repayment.

It outlines procedures for collecting outstanding debts and reducing the risk of non-payment.

It measures how quickly a company collects payment from its customers.

Outsourcing involves delegating tasks to external parties and does not directly accelerate cash receipts.

It categorizes outstanding receivables based on how long they've been outstanding.

Factoring can incur significant fees and interest costs.

It compares a company's current assets to its current liabilities to determine its short-term liquidity.

It helps evaluate the likelihood that customers will repay their debts on time.

It calculates the average number of days it takes for a company to collect payment from its customers.

Credit analysis evaluates the risk associated with extending credit to customers based on their financial history and ability to repay debts.

Outsourcing collections may lead to a loss of control over customer interactions and relationship management.

It measures how efficiently a company collects payments from customers during a specific period.