[amp_mcq option1=”Level of sales” option2=”Number of employees” option3=”Credit terms” option4=”Collection policy” correct=”option2″]<\/p>\n
The correct answer is: B. Number of employees.<\/p>\n
The balance of trade receivables is the amount of money that a company is owed by its customers. It is affected by the level of sales, the credit terms offered to customers, and the collection policy of the company. The number of employees does not affect the balance of trade receivables.<\/p>\n
The level of sales is the most important factor that affects the balance of trade receivables. The higher the level of sales, the higher the balance of trade receivables. This is because the company will have more customers who owe it money.<\/p>\n
The credit terms offered to customers also affect the balance of trade receivables. The longer the credit terms, the higher the balance of trade receivables. This is because the company will have to wait longer for its customers to pay their bills.<\/p>\n
The collection policy of the company also affects the balance of trade receivables. A strict collection policy will result in a lower balance of trade receivables. This is because the company will be more aggressive in collecting its debts.<\/p>\n
The number of employees does not affect the balance of trade receivables. This is because the number of employees does not affect the level of sales, the credit terms offered to customers, or the collection policy of the company.<\/p>\n","protected":false},"excerpt":{"rendered":"
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