Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

Management of Accounts Receivables does not typically include which of the following?

1. Sending reminders for payments

2. Offering warranties on products

3. Providing incentives for customers to make larger purchases by reducing prices

4. Performing credit checks on customers

The correct answer is: Providing incentives for customers to make larger purchases by reducing prices

The management of accounts receivable primarily focuses on ensuring that the money owed by customers is collected efficiently and effectively. This includes activities that directly relate to monitoring, collecting, and enforcing payments from clients. Sending reminders for payments, performing credit checks on customers, and offering warranties on products all pertain to aspects of encouraging timely payments or assessing the risk associated with extending credit to customers. Incentives for customers to make larger purchases, such as reducing prices, while they may affect overall sales strategy, do not directly tie into the management of accounts receivable. This practice is more aligned with sales and marketing strategies aimed at encouraging customer purchases rather than managing how and when payments are collected. Thus, it falls outside the typical scope of accounts receivable management, making this option the correct answer.