The Average Collection Period Measures The

question 67

Multiple Choice

The average collection period measures the:

• A)number of days between when a typical credit sale is made and when the firm receives the payment
• 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

---

Definitions:

Supply Curve

A graph showing the relationship between the quantity of a good that producers are willing to sell and the price of the good.

Y Axis

The vertical axis in a graph or chart, typically used to represent the range of a second variable in comparison to the first variable on the X axis.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded.

Movement

Refers to a change in position, location, or state of an object or concept over time.