Learning Objectives Topic III Accounts Receivable

Learning Objectives Topic III Accounts Receivable -...

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Learning Objectives Topic III Accounts Receivable BE ABLE TO: Define account receivables, trade credit, consumer credit. Define credit policy and its components of credit terms, credit analysis, and collection policy. Describe how credit analysis involves credit evaluation, credit standard and credit decisions. Define the various terms of credit as discussed in class and the rationale for the use of each of these. Identify and define the discount period and collection period contained in discount terms.
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Unformatted text preview: Calculate the cost of forgoing the discount when discount terms are offered. Explain why the discount should generally be taken and provide explanations as to why surveys find a surprisingly high percent of payers not taking the discount. Describe a typical collection policy. The cost and benefits from changing credit terms, making credit standards higher, making collection policy more rigorous....
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This note was uploaded on 04/05/2011 for the course FIN 320 taught by Professor Yatin during the Winter '07 term at Grand Valley State.

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