A General Rule to Use in Assessing the Average Collection

question 72

Multiple Choice

A general rule to use in assessing the average collection period is that it

• A)should not greatly exceed the credit term period.
• B)should not exceed 30 days.
• C)can be any length as long as the customer continues to buy merchandise.
• D)should not greatly exceed the discount period.

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Definitions:

Gray Matter

The darker-colored areas of the brain and spinal cord, consisting mainly of neuronal cell bodies and branching dendrites.

Hippocampus

A part of the brain involved in the formation of new memories and is associated with learning and emotions.

Amygdala

A structure in the brain that plays a key role in emotion and memory.

Serotonin Activity

The biochemical process involving serotonin, a neurotransmitter that plays a key role in mood regulation and other bodily functions.