Fill in the Following Chart

question 61

Essay

Fill in the following chart.

---

Definitions:

Average Collection Period

The average number of days it takes for a business to collect payments from its customers after a sale has been made.

Discount Policy

A company's strategy regarding the conditions under which discounts are offered to customers, affecting sales volume, revenue, and cash flows.

Credit Terms

Refers to the conditions under which credit is extended by a lender to a borrower, including repayment schedule, interest rate, and due dates.

Net 45

A term indicating that payment is due 45 days after the invoice date.