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Net Income
A company's overall earnings following the deduction of all expenses and taxes from its gross income.
Average Collection Period
The average number of days it takes for a company to collect receivables from its customers, indicating the efficiency of its credit policies.
Discount Period
The time frame in which a buyer can pay less than the full amount due on an invoice if payment is made promptly, incentivizing early payment.
Credit Term
The agreement between a buyer and a seller that defines the amount of time a buyer has to pay for goods.
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