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:

Amsterdam

The capital city of the Netherlands, known for its historic canals, cultural heritage, museum district, and liberal attitudes.

Seventeenth Century

The century that spanned from January 1, 1601, to December 31, 1700, notable for significant cultural and political developments.

Henry Hudson

A 17th-century explorer who is best known for his explorations of present-day Canada and parts of the northeastern United States, including the river that now bears his name.

Northwest Passage

A sea route connecting the northern Atlantic and Pacific Oceans through the Arctic Ocean, along the northern coast of North America.