Prompt: Managing accounts receivable (trade credit) is critical to the company’s ability to manage its daily ongoing operations and the associated cash flow requirements. Describe why the practice of managing accounts receivable (A/R) is so significant. Consider in your paper the following questions: • Why is the practice of managing A/R significant? • What is the influence of the management of A/R on shareholder value, credit policy decisions, credit rating sources for potential clients, credit scoring models, and credit terms with analysis?
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