A Decreasing Average Collection Period Indicates

question 38

Multiple Choice

A decreasing average collection period indicates

• A) the firm is generating more income.
• B) accounts receivable is going down.
• C) the company is becoming more efficient in its collection policy.
• D) the company is becoming less efficient in its collection policy.

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Definitions:

Grow Older

The natural process of aging or maturing, involving biological, emotional, and psychological changes over time.

Contingent Employees

Workers hired on a temporary basis, often without the benefits afforded to full-time employees.

Lower Job Involvement

A worker's lesser psychological identification with or commitment to their job, typically leading to reduced motivation and performance.

Cost Less

The strategy or outcome of reducing expenses or spending less money on a project or product.