Higher the credit period, the greater are the chances for the recovery of debt.

Keep practicing — related questions

• The situation is to have a high financial leverage and low operating leverage.
• Bad debts arise out of both cash and credit sales.
• Debtors which are older than six months and sticky are not current assets.
• Increase in CRR helps in sucking the excess liquidity in the economy.
• A budget can help you buy wisely and avoid credit problems.
• There is a perceptible risk even in case of good loans (standard assets).
• _____________ costs of borrowing increase the debt - burden.
• The limitation for recovery of the outstanding amount in the cash credit account is ______________ years fr...