Asked by Alycia Eskew on Jul 05, 2024
Verified
If credit restrictions for accounts receivable are increased, then it would move a firm toward a flexible short-term financial policy.
Credit Restrictions
Refers to the limitations imposed by lenders on the amount of credit extended to borrowers to manage risk.
Flexible Policy
An adaptable approach in decision-making processes or strategies that allows for adjustments based on changing circumstances.
- Identify the influence of brief financial strategies on liquidity and cash flow management.
Verified Answer
SA
Stephanie AvilaJul 08, 2024
Final Answer :
False
Explanation :
Increasing credit restrictions for accounts receivable would move a firm toward a more restrictive short-term financial policy, as it would be tightening credit terms and potentially reducing the level of accounts receivable.
Learning Objectives
- Identify the influence of brief financial strategies on liquidity and cash flow management.
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