The Sarbanes-Oxley Act (SOX) requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports

One way to reduce a firm's cash conversion cycle would be to have as many customers as possible pay using credit rather than cash

Indicate whether the statement is true or false.

Lee's Lions has made a profit in each of the last two months. However, it is not generating enough cash from credit sales to cover all of its current expenses

The owners understand the value of increasing sales volume by offering customers the ability to purchase on credit, but they are frustrated by the current situation. Explain to them the issues in granting credit and the management of accounts receivable. What will be an ideal response?