When a Firm Improves (Lowers)its Average Collection Period, It Generally

question 5

Multiple Choice

When a firm improves (lowers) its average collection period, it generally

• A)requires additional cash investment in inventory.
• B)releases cash locked up in accounts receivable.
• C)does not alter its cash position.
• D)cannot reduce its receivables.

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Definitions:

Diplomas

Documents or certifications awarded by educational institutions to indicate that an individual has successfully completed a particular course of study.

Mass Education

The provision of education to large numbers of people, typically through public schooling systems, aimed at achieving a high level of literacy and knowledge in a population.

Literate

Having the ability to read and write, or possessing knowledge in a particular area.

Numerate

Having the ability or skill to perform basic mathematical operations and understand quantitative information.