Question

Which one of the following is not one of the principles of managing accounts receivable?

1) Determining to whom to extend credit
2) Accelerating cash receipts from receivables when necessary
3) Cross-indexing journal-entries with the postings to the ledger
4) Establishing a payment period
5) Evaluate the liquidity of receivables

Answer 1

The principle of managing accounts receivable that is not listed among the given options is cross-indexing journal entries with the postings to the ledger.

Step-by-step explanation:

The principle of managing accounts receivable that is not listed among the given options is 3) Cross-indexing journal entries with the postings to the ledger.

Managing accounts receivable involves various principles to ensure efficient handling of money owed by customers to a business. These principles include determining to whom to extend credit, accelerating cash receipts when necessary, establishing a payment period, and evaluating the liquidity of receivables. However, cross-indexing journal entries with postings to the ledger is not a specific principle associated with managing accounts receivable.