answersLogoWhite

0


Best Answer

a. Average collection period = Accounts receivable/Average daily credit sales An increase in the average collection period may be the result of a predetermined plan to expand credit terms or the consequence of poor credit administration. b. Ratio of bad debts to credit sales. An increasing ratio may indicate too many weak accounts or an aggressive market expansion policy. c. Aging of accounts receivable. Aging of accounts receivable is one way of finding out if customers are paying their bills within the time prescribed in the credit terms. If there is a buildup in receivables beyond normal credit terms, cash inflows will suffer and more stringent credit terms and collection procedures may have to be implemented.

User Avatar

Wiki User

16y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are three quantitative measures that can be applied to the collection policy of the firm?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How does monetary policy control the money supply?

through quantitative measures like CRR , Bank Rate Policy and Open Market Operations and Qualitative measures like Moral Suasion, Marginal Safety Requirements, Rationing Credit etc


Relevance of quantitative techniques to policy formulation?

quantify and find out the gap statistically to go to near to conclusion


What is a AUP policy?

a set of rules applied by a manager


If a policy is defined in a GPO linked to a domain and that policy is defined with a different setting in a GPO linked to an OU which is true by default?

the policy is applied in the order of LSDOU local site->domain->then OU the poilcy applied will be of OU in the end


Measures that the federal government takes to stabilize the economy are .?

fiscal policy


What is the governmental allocation and collection of money within the state?

Fiscal policy


Is the governmental allocation and collection of money within the state?

Fiscal policy


What is the optimum credit policy?

The Optimum Credit Policy is a policy that is applied if you have a near perfect credit rating. Most people strive for an Optimum Credit Policy.


Who was the president who applied the policy of containment during the cold war?

President Harry Truman isssued the policy of containment


What means that each policy must be read and applied completely before the next policy can be invoked?

synchronous processing


What is called fiscal policy?

Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy


What was a harsh reconstruction policy that applied to the south?

To be 50% loyal to the north