An Increasing Average Collection Period Indicates

question 73

Multiple Choice

An increasing average collection period indicates:

• A) the firm is generating more income.
• B) accounts receivable is going down.
• C) the company is becoming more efficient in its collection policy.
• D) the company is becoming less efficient in its collection policy.

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Definitions:

Effective Performance

The degree to which objectives are achieved and the extent to which targeted problems are solved in a timely and efficient manner.

Emotional Stability

refers to a person's ability to remain calm and composed, effectively managing their emotions in face of stress, pressure, or adversity.

Information Processing

The series of actions or operations that the mind or a computer system undertakes to receive, retrieve, store, and utilize information.

Optimism

A mindset marked by optimism and belief in one's ability to achieve success and a bright future.