It is held that the level of accounts receivable that a firm has or holds reflects both the volume of a firm’s sales on account and a firm’s credit policies. Which one of the following items is not considered as part of a firm’s “credit policy”?
A. The maximum risk group to which credit should be extended.
B. The extent (in terms of money) to which a firm will go to collect an account.
C. The length of time for which credit is extended.
D. The size of the discount that will be offered.
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