Question

Financial policy goals: maintain accounts receivable at about WHAT times the average monthly collectible production?

a) 1-2 times
b) 3-4 times
c) 5-6 times
d) 7-8 times

Answer 1

Financial policy goals aim to maintain accounts receivable at about b) 3-4 times the average monthly collectible production.

Step-by-step explanation:

Financial policy goals aim to maintain accounts receivable at a certain level relative to the average monthly collectible production. In this case, the goal is to maintain accounts receivable at about 3-4 times the average monthly collectible production. This means that the company wants to have 3-4 times more in accounts receivable than the average monthly sales.