All of the Following Statements Are true Regarding the Average

question 163

Multiple Choice

All of the following statements are true regarding the average collection period except:

• A)it is a popular variant of the accounts receivable turnover.
• B)it is used to assess the effectiveness of a company's credit and collection policies.
• C)it should generally exceed the credit term period.
• D)its increase may suggest a decline in the financial health of customers.

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Definitions:

Motivates Behavior

Drives or urges that prompt individuals to act in certain ways to achieve specific outcomes.

Anticipatory Goal Response

Stimuli associated with reward produce a conditioned arousal response, which motivates an approach to the reward.

Internal State

The condition or situation within an organism or object, often referring to physiological or emotional states not visible externally.

Extinction

The elimination or suppression of a response caused by the discontinuation of reinforcement or the removal of the unconditioned stimulus.