If the Average Collection Period or Days Sales Outstanding Is

question 42

True/False

If the average collection period or days sales outstanding is increasing the firm should consider easing its credit policy to allow credit to more of its customers.

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Definitions:

Personal Distress

A negative emotional response to a stressful situation, which is personal and subjective in nature.

Medical Model

A framework that views abnormalities or illnesses primarily as the result of biological factors and which should be treated through medical intervention.

Prognosis

A forecast or prediction about the likely outcome or course of a disease based on the individual’s condition and medical knowledge.

Adaptive Functioning

A person's ability to manage common demands of life and meet the standards expected for their age and cultural group, including social and practical skills.