MANAGEMENT

Detailed explanation-1: -Level of sales: This is the most important factor in determining the size of accounts receivable.

Detailed explanation-2: -Answer: c. Delay cash receipts from receivables if necessary. Delaying cash receipts from receivables is not a principle of sound accounts receivable management.

Detailed explanation-3: -Once the payment is made, the cash segment in the balance sheet will increase by Rs 1, 00, 000, and the account receivable will be decreased by the same amount, because the customer has made the payment. The amount of account receivable depends on the line of credit which the customer enjoys from the company.