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The level of accounts receivable for the firm:

Looking for the answer to the question below related to Financial Management?

The level of accounts receivable for the firm:

 Options:

A. should be judged based on historical standards of industry norms
B. should be judged as to whether the return earned on A/R equals or exceeds the potential gain from other investments
C. is irrelevant as long as sales are increasing
D. is not the concern of the financial manager

 

The Correct Answer Is:

  • B. should be judged as to whether the return earned on A/R equals or exceeds the potential gain from other investments

 

Conclusion

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