A General Rule to Use in Assessing the Average Collection

question 187

Multiple Choice

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

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

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Definitions:

External Sources

Information or support that is obtained from outside an individual's immediate environment or organization.

Internal Sources

Information or resources that originate from within an organization or individual, as opposed to external contributions.

Successes

Achievements or instances of achieving desired goals or outcomes.

Failures

Instances where an objective or goal is not achieved, often leading to disappointment or the need for reassessment.