A General Rule to Use in Assessing the Average Collection

question 59

Multiple Choice

A general rule to use in assessing the average collection period is that it

• A) should not exceed 30 days.
• B) can be any length as long as the customer continues to buy merchandise.
• C) should not greatly exceed the return period.
• D) should not greatly exceed the credit term period.

---

Definitions:

Better Performers

Individuals or entities that achieve superior outcomes or excel in their tasks compared to their peers or expected standards.

Universal Necessities

Fundamental needs or requirements that are common to all humans, regardless of culture or location.

Self-Determination Theory

A psychological theory of motivation that highlights the role of intrinsic motivation in personal development and psychological health.

McClelland's Affiliation Need

The desire to build relationships, feel part of a group, and be liked, which is one of the three social motives according to David McClelland's theory.