Free PCM Credit & Account Management Questions and Answers

Question 1

What is a key factor in evaluating a customer’s creditworthiness?

Accepted Answer

Credit history and payment patterns

Answer

Customer’s age

Answer

Customer’s job title

Answer

Customer’s favorite products

Question 2

What is a common method for managing accounts receivable?

Accepted Answer

Regular invoicing and follow-up

Answer

Ignoring overdue accounts

Answer

Delaying invoices

Answer

Allowing unlimited credit

Question 3

Which report provides a summary of a customer’s outstanding balances and payments?

Accepted Answer

Account aging report

Answer

Credit report

Answer

Income statement

Answer

Balance sheet

Question 4

What is the purpose of setting credit limits?

Accepted Answer

To control risk exposure

Answer

To maximize sales regardless of risk

Answer

To encourage late payments

Answer

To reduce customer orders

Question 5

Which action should be taken when a customer consistently misses payments?

Accepted Answer

Review and adjust credit terms

Answer

Ignore missed payments

Answer

Increase credit limit

Answer

Send more product samples

Question 6

What is the benefit of maintaining accurate account records?

Accepted Answer

Supports effective collection

Answer

Increases errors

Answer

Confuses management

Answer

Delays payments

Question 7

Which document is essential when extending credit to a new customer?

Accepted Answer

Credit application

Answer

Invoice

Answer

Purchase order

Answer

Packing slip

Question 8

What is the function of credit scoring?

Accepted Answer

Assess risk

Answer

Ignore risk

Answer

Increase sales unconditionally

Answer

Delay payments

Question 9

Why is communication important in account management?

Accepted Answer

To address issues and manage payments

Answer

To avoid customer contact

Answer

To delay payment discussions

Answer

To confuse customers