Which of the following would be a reason for the movement in the trade receivable days?


The following information relates to ABC.

Which of the following would be a reason for the movement in the trade receivable days?
A . A new credit controller was appointed during the year ended 30 June 20X3 who has been chasing customers for payment.
B . A system of early settlement discount was introduced during the year ended 30 June 20X3 which was taken up by quite a few customers.
C . One customer who regularly took 120 days to pay their invoices stopped buying goods from ABC during the year ended 30 June 20X3.
D . It was decided during the year ended 30 June 20X3 to stop undertaking credit checks on new customers.

Answer: D

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