What are credit terms?
What are the four credit policy variables?
Define days sales outstanding (DSO). What can be learned from it,
and how is it affected by seasonal sales fluctuations?
What is an aging schedule? What can be learned from it? How is it
affected by sales fluctuations?
What is credit quality, and how is it assessed?
How does collection policy influence sales, the collection period,
and the bad debt loss percentage?
How can cash discounts be used to influence sales volume and the
DSO?
How do legal considerations affect a firm’s credit policy?
