Last Year,Allen Company's Average Collectionperiod for Accounts Receivable Was 40

question 6

Multiple Choice

Last year,Allen Company's average collectionperiod for accounts receivable was 40 days; this year,it increased to 60 days.Which of the following would most likely account for this change?

• A) A decrease in accounts receivable relative to sales.
• B) A decrease in sales.
• C) A relaxation of credit policies.
• D) An increase in sales.

---

Definitions:

Oldest Form

The earliest version or type of something, particularly referring to cultural or historical practices and artifacts.

Formal Writing

A type of writing that adheres to traditional standards and is structured, serious, and objective in tone.

Unfamiliar External Audience

A group outside one's organization or usual circle that is not previously known or engaged with.

Formal Writing Style

A method of communication that is professional, adheres to traditional standards, and avoids casual language or slang.