An Increase in the Average Collection Period May Suggest All

question 42

Multiple Choice

An increase in the average collection period may suggest all of the following except

• A)easing of credit terms
• B)customers are not paying their bills on time
• C)sales have decreased
• D)firm could have a liquidity problem in the future

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Definitions:

Midterm

An examination or assessment occurring in the middle of an academic term or period.

Percentage

A percentage is a fraction or ratio expressed as a part of 100, commonly used to quantify or compare parts of a whole.

Cross-Classification Table

A tabular method used to organize data according to two or more categories or variables, facilitating the analysis of the relationship between them.

Bar Charts

A visual representation of data using bars of varying heights or lengths to compare different categories.