The Average Collection Period Tells How Many Days It Takes

question 38

True/False

The average collection period tells how many days it takes a business to pay money for trade credits to its suppliers.

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Definitions:

Normative Statement

A value judgment that expresses an opinion or belief about what ought to be, rather than statements of fact.

Administrative Department

A part of an organization responsible for managing its internal affairs and ensuring the efficient execution of operations.

Economists

Professionals who study the production, distribution, and consumption of goods and services, often analyzing economic issues and trends.

Opportunity Cost

The price paid by not choosing the second-best option when a decision is made or one choice is selected over another.