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Question

Which of the following is not a technique of receivables management?

A
Funds Flow Analysis
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B
Ageing Schedule
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C
Days Sales Outstanding
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D
Collection Matrix
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Solution

The correct option is A Funds Flow Analysis
Receivable management is the process of deciding the investment in debtors. A good receivable management policy helps in reducing the overdue payment or non payment.
There are certain factors which need to be considered while implementing receivable management i.e. ageing schedule, days sales outstanding and collection matrix.

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