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    Factors Influencing The Receivables Level

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    40. A company's investment in receivables is influenced by several variables, including:

    A. The level of sales.

    B. The nature of the product or service sold.

    C. The credit and collection policies.

    D. All of these are correct.

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    A company's investment in receivables is influenced by the level of sales; if the investment tends to run at a set percentage, the greater the volume of sales, the greater the investment will be. Likewise, it is ...

    Solution Summary

    This solution discusses the factors influencing the level of a company's accounts receivable.