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In an analysis of alternative credit-management policies, which of the following components will cause the...

In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?

A.

A tougher collections policy that reduces the bad debt loss ratio.

B.

A higher cost per unit sold.

C.

A longer average collection period.

D.

An increase in the cost of capital.

IIA IIA-ACCA Summary

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  • Product: IIA-ACCA
  • Update on: Jul 29, 2025
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