Accounting for IGCSE & O level - Advanced Principles (Section 6 - No. 43)
Which of the following is NOT an example of how companies can improve trade receivables collection period?
Sending out regular reminders and payment due reminders.
Offering more generous cash discounts for early payments.
Using legal action to ensure prompt payment.
Offering a shorter credit period.
Paliwanag
A shorter credit period reduces the time customers have to pay their invoices, thereby reducing the collection period.