The Collection Period Measures ________

question 26

Multiple Choice

The collection period measures ________.

• A) average grants to charitable institutions
• B) the average time in court needed to get customers to pay late bills
• C) how current a retailer is in paying its accounts payable
• D) the average age of accounts receivable

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Definitions:

Corporate Bond

A type of bond issued by corporations to fund capital investments and operations, promising to pay back with interest.

Yield

The income return on an investment, such as the interest or dividends received from holding a particular security.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock, which indicates its value at issuance or maturity.

Dividend Payments

Payments made by a corporation to its shareholder members, usually derived from the company's profits.