Credit and Receivable Management: AR Management

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Questions and Answers

What is the primary focus of analyzing customer behavior in a customer profiling model?

  • Determining late payment penalties
  • Understanding credit limit usage
  • Identifying payment time and terms pattern (correct)
  • Predicting early settlement discounts

What can be predicted using the trend of early, on-time, and late payments?

  • Unearned discounts claimed by customers
  • Grace period impact on late payments
  • Future invoice payment behavior (correct)
  • Credit exposure at the customer level

What is derived from customer profiling in the context of invoice risk modeling?

  • Customer payment behavior insights (correct)
  • Invoice process flow diagrams
  • Credit limit usage patterns
  • Unearned discounts claimed by customers

What is the purpose of comparative analysis of credit limit vs. credit exposure?

<p>To identify customers who are backlogging on high amounts (D)</p> Signup and view all the answers

What can invoice process flow diagrams help analyze?

<p>Preferred sources and terms of payments (D)</p> Signup and view all the answers

What can be established by analyzing unearned discounts alongside non-compliant and compliant payments?

<p>A correlation between deductions and associated invoice risk (B)</p> Signup and view all the answers

What is the purpose of considering the grace period in customer profiling?

<p>To know the impact of float days on late payments (C)</p> Signup and view all the answers

What can be used to predict problematic areas where invoices are not moving as expected?

<p>Customer payment behavior insights (C)</p> Signup and view all the answers

What is the outcome of analyzing payment behavior and invoice risk?

<p>Prediction of future invoice payment behavior (C)</p> Signup and view all the answers

What can be identified by analyzing payment time and terms pattern?

<p>Customers who are backlogging on high amounts (B)</p> Signup and view all the answers

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