What may trigger an internal review of a customer’s credit terms?

The option regarding missed payments or changes in financial status is correct because these factors are key indicators of a customer's credit risk. When a customer fails to meet their payment obligations consistently or experiences a significant change in their financial situation, it raises concerns about their ability to fulfill future payments. Hence, companies need to conduct an internal review of that customer's credit terms to assess whether the current terms remain appropriate or should be adjusted to mitigate potential losses.

Monitoring customer behavior for signs of financial instability is essential in accounts receivable management. This helps organizations make informed decisions about extending credit or adjusting terms, ensuring they maintain healthy cash flows and reduce the risk of bad debts. Other factors like consistent purchases of high-value items may indicate a good customer relationship, but they don’t necessarily prompt a review of credit terms without accompanying payment issues. Similarly, increasing inquiries about products or frequent returns may reflect customer interest or dissatisfaction, respectively, but they are not direct indicators of a customer's ability to meet credit obligations.