collection policy

(noun)

the set of rules for receiving accounts payable or debt

Related Terms

  • bad-debt losses
  • credit period
  • collateral

Examples of collection policy in the following topics:

  • Setting a Credit Policy

    • To establish a credit policy, a company must establish credit standards, credit terms, and a collection policy.
    • There are three steps a company must undergo when developing a credit policy:
    • Potential losses not only include the selling price, but can also include disruption to cash flows and increased collection costs.
    • The last step is to establish a collection policy.
    • Collection policies vary widely among industries.
  • Collecting Receivables

    • Companies use different methods to collect their outstanding receivables, like sending out reminders or employing a collection agency.
    • In dealing with collections, it is important for a firm to start by monitoring its accounts receivable in order to determine whether its policy is working to the best advantage of the company.
    • By comparing this number to the number in the credit policy, a business can determine whether its policy is effective or not.
    • Another way to evaluate a credit policy is to look at the receivable turnover ratio.
    • There are many types of collection agencies.
  • Education Policy

    • Education policy refers to the collection of laws and rules that govern the operation of education systems.
    • Education policy refers to the collection of laws and rules that govern the operation of education systems.
    • Education policy analysis is the scholarly study of education policy.
    • The primary functions of the Department of Education are to "establish policy for, administer and coordinate -most federal assistance to education, collect data on US schools, and to enforce federal educational laws regarding privacy and civil rights. " However, the Department of Education does not establish schools or colleges.
    • Discuss the institutions and issues relevant to current education policy in the United States and the sources of education policy evaluation and analysis
  • Fiscal Policy and Policy Making

    • Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.
    • In economics and political science, fiscal policy is the use of government budget or revenue collection (taxation) and expenditure (spending) to influence economic.
    • The two main instruments of fiscal policy are government taxation and expenditure.
    • Neutral fiscal policy, usually undertaken when an economy is in equilibrium.
    • Comparison of National Spending Per Citizen for the 20 Largest Economies is an example of various fiscal policies.
  • Fiscal Policy

    • Fiscal policy is the use of government revenue collection or taxation, and expenditure (spending) to influence the economy.
    • In economics and political science, fiscal policy is the use of government revenue collection or taxation, and expenditure (spending) to influence the economy.
    • Neutral fiscal policy is usually undertaken when an economy is in equilibrium.
    • Expansionary fiscal policy involves government spending exceeding tax revenue, and is usually undertaken during recessions.
    • Review the United States' stances of fiscal policy, methods of funding, and policies regarding borrowing
  • Defining Fiscal Policy

    • Fiscal policy is the use of government spending and taxation to influence the economy.
    • Fiscal policy is the use of government spending and taxation to influence the economy.
    • Neutral: This type of policy is usually undertaken when an economy is in equilibrium.
    • In this instance, the government spends more money than it collects in taxes.
    • Contractionary: This type of policy is undertaken to pay down government debt and to cap inflation.
  • Arguments For and Against Fighting Recession with Expansionary Fiscal Policy

    • Fiscal policy is a broad term, describing the policies enacted around government revenue and expenditure in order to influence the economy.
    • Remember that government revenue is based on collected taxes.
    • When the government spends more than the revenue it collects, it has a deficit.
    • Increasing government spending, creating a budget deficit, and financing the shortfall through debt issuance are typical policy actions in an expansionary fiscal policy scenario.
    • Evaluate the pros and cons of fiscal policy intervention during recession
  • Long-Run Implications of Fiscal Policy

    • Expansionary fiscal policy can lead to decreased private investment, decreased net imports, and increased inflation.
    • Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.
    • That being said, these changes in fiscal policy can affect the following macroeconomic variables in an economy:
    • Economists still debate the effectiveness of fiscal policy to influence the economy, particularly when it comes to using expansionary fiscal policy to stimulate the economy.
    • If a country pursues and expansionary fiscal policy, high inflation becomes a concern.
  • Limits of Fiscal Policy

    • Two key limits of fiscal policy are coordination with the nation's monetary policy and differing political viewpoints.
    • While fiscal policy can be a powerful tool for influencing the economy, there are limits in how effective these policies are.
    • Fiscal policy and monetary policy are the two primary tools used by the State to achieve its macroeconomic objectives.
    • Policy makers are viewed to interact as strategic substitutes when one policy maker's expansionary (contractionary) policies are countered by another policy maker's contractionary (expansionary) policies.
    • Chartalists argue that deficit spending is logically necessary because, in their view, fiat money is created by deficit spending: one cannot collect fiat money in taxes before one has issued it and spent it, and the amount of fiat money in circulation is exactly the government debt – money spent but not collected in taxes.
  • Difficulty in Getting the Timing Right

    • With discretionary fiscal policy, timing plays a very significant role.
    • Discretionary policy often requires that a set of laws must be passed through a legislature.
    • This means that the problem has to be identified first, which means collecting macroeconomic data.
    • The problem with this is that it could be weeks, or even months, before the necessary data is collected and organized in a way that would reveal there is a problem.
    • Explain the effect of timing on the use of fiscal policy tools
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