If a Company's Collection Period for Accounts Receivable Is Considered

question 23

Multiple Choice

If a company's collection period for accounts receivable is considered to be excessively long, then

• A)the company may want to invest excess cash from receivable collections in the stock market.
• B)the company might examine its billing procedures in order to expedite collection from customers.
• C)customer returns should be disallowed in order to increase the collection of cash.
• D)cash flows from operations will probably be more than sufficient.

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