Asked by Adarsh Prasad on Jun 26, 2024

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Which of the following is NOT commonly regarded as being a credit policy variable?

A) credit period
B) collection policy
C) cash discounts
D) payments deferral period

Credit Policy Variable

An element that defines the guidelines under which credit is extended to customers, including terms of payment and interest rates.

Credit Period

The duration of time a buyer is allowed to pay for goods or services received, before interest or penalties begin accruing.

Collection Policy

The specific strategies and methods a company uses to manage the collection of its accounts receivable.

  • Acknowledge the implications of different credit policy variables and their impact on a firm's cash flows and customer behavior.
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JN
Johnson NzowaJun 26, 2024
Final Answer :
D
Explanation :
Payments deferral period is not commonly regarded as a credit policy variable. Credit period, collection policy, and cash discounts are typically considered key variables in a company's credit policy.