Question

An overall management objective is to:

a. minimize the number of sales transactions
b. minimize the total amount of accounts receivable
c. minimize the time from the beginning of the selling process to the end of cash collections
d. maximize the amount of float

Answer 1

c. minimize the time from the beginning of the selling process to the end of cash collections

Step-by-step explanation:

Management does not aim to minimize sales transactions or total amount of accounts receivable. Neither does it aim, to hold excess cash through cash float. Management aims to minimize the time from the beginning of the selling process to the end of cash collections so as to be liquid and avoid bad debts.