What Simple Controls Should Be Established Over Accounts Receivable

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The Answer is Before extending credit, a business should determine that a customer is likely to pay. This means that a credit check should be done. The amount of credit extended should be based on the customer's income, amounts of other debt, etc. A business should monitor the accounts receivable balances of its customers. The business must have an accounting system that allows the business to track each customer's credit activity. It also needs an organised collection effort. The business should monitor its total accounts receivable balance. The business should investigate why its accounts receivable balance is increasing or decreasing.

What Simple Controls Should Be Established Over Accounts Receivable

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What Simple Controls Should Be Established Over Accounts Receivable

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Correct Answer:
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