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

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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 ...

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