Question

Why would your company want to extend out its accounts receivable policy? Select One A. Extending...

Why would your company want to extend out its accounts receivable policy?

Select One

A.

Extending their receivables will slightly increase demand

B.

Extending their receivables will increase their available cash

C.

Extending their receivables will make their suppliers happy

D.

None of the above

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Answer #1

Hello Sir/ Mam

YOUR REQUIRED ANSWER IS OPTION A : Extending their receivables will slightly increase demand

Account Receivables is the amount that is due for receipt in lieu of credit sales.

Relaxing AR policy will result in boosting credit sales and hence, slightly increasing demand.

I hope this solves your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

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