Final answer:
Effective accounts receivable management for financial managers involves reviewing new customers' credit history to assess risk and plan for potential defaults, ensuring the overall financial health of the business. Therefore, the correct option is D.
Step-by-step explanation:
The effective management of accounts receivable requires financial managers to review the credit history of new customers. This action helps to assess the risk associated with offering credit and to avoid potential defaults. Businesses can improve their financial health by ensuring they pay their bills on time and do not overextend the credit available to them. Additionally, a bank's assets such as cash reserves, loans made to customers, and bonds are critical for their operations. Potential borrowers can reassure banks by demonstrating a history of timely payments. Banks also plan for a small percentage of loan defaults; however, if defaults are higher than expected, it can cause significant issues.