A Short Average Collection Period (ACP)could Indicate That the Firm

question 269

Multiple Choice

A short average collection period (ACP) could indicate that the firm:

• A)offers unusually large discounts.
• B)is tough in its credit policy.
• C)has a very efficient credit and collection department.
• D)All of the above
• E)a and b

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Definitions:

Actual Authority

The express power granted by a principal to an agent to perform tasks or make decisions on their behalf.

Principal

The initial amount of a loan or investment, excluding any interest or dividends.

Agent

An individual or entity authorized to act on behalf of another.

Contract

A legally binding agreement between two or more parties that outlines obligations each party must fulfill.