A General Rule to Use in Assessing the Average Collection

question 101

Multiple Choice

A general rule to use in assessing the average collection period is that it

• A) should not greatly exceed the discount period.
• B) should not exceed 30 days.
• C) can be any length as long as the customer continues to buy merchandise.
• D) should not greatly exceed the credit term period.

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Definitions:

Methamphetamines

A highly addictive stimulant drug that affects the central nervous system, leading to increased activity, decreased appetite, and a sense of euphoria.

Dependence

A condition characterized by the compulsive use of a substance or engagement in a behavior, leading to psychological or physical reliance.

Energetic

Exhibiting or involving a high level of energy or activity.

Cocaine

An addictive and potent stimulant made from coca plant leaves, renowned for inducing feelings of euphoria.