The Average Collection Period Measures The

question 210

Multiple Choice

The average collection period measures the:

• A)number of days from the time a typical credit sale is made until payment is received.
• B)number of days it takes a typical check to "clear" through the banking system.
• C)number of days beyond the end of the credit period before a typical customer payment is received.
• D)number of days before a typical account becomes delinquent.

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Definitions:

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