{"id":59367,"date":"2024-04-16T01:35:57","date_gmt":"2024-04-16T01:35:57","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59367"},"modified":"2024-04-16T01:35:57","modified_gmt":"2024-04-16T01:35:57","slug":"which-of-the-following-is-not-a-part-of-credit-policy","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-part-of-credit-policy\/","title":{"rendered":"Which of the following is not a part of credit policy?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Collection Effort&#8221; option2=&#8221;Cash Discount&#8221; option3=&#8221;Credit Standard&#8221; option4=&#8221;Paying Practices of Debtors&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>A. Collection Effort<\/strong><\/p>\n<p>A credit policy is a set of rules that a company uses to determine whether to extend credit to customers, and if so, on what terms. The policy includes factors such as the credit limit, the interest rate, and the grace period.<\/p>\n<p>Collection effort is not a part of a credit policy because it is a process that is used to collect debts that are already past due. It is not a factor that is considered when a company decides whether to extend credit to a customer.<\/p>\n<p>The other options are all part of a credit policy.<\/p>\n<ul>\n<li><strong>B. Cash Discount<\/strong> is a discount that is offered to customers who pay their bills early. It is a way to encourage customers to pay their bills on time and to reduce the amount of money that a company has to tie up in accounts receivable.<\/li>\n<li><strong>C. Credit Standard<\/strong> is the minimum level of creditworthiness that a company requires of its customers. It is used to determine whether to extend credit to a customer and on what terms.<\/li>\n<li><strong>D. Paying Practices of Debtors<\/strong> is the way that customers pay their bills. It includes factors such as the average payment time and the number of late payments. This information is used to assess the creditworthiness of customers and to determine whether to extend credit to them.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Collection Effort&#8221; option2=&#8221;Cash Discount&#8221; option3=&#8221;Credit Standard&#8221; option4=&#8221;Paying Practices of Debtors&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-59367","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following is not a part of credit policy?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-part-of-credit-policy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following is not a part of credit policy?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Collection Effort&#8221; 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