If a Company's Average Collection Period Is Higher Than the Industry

question 63

Multiple Choice

If a company's average collection period is higher than the industry average, then the company might be:

• A) enforcing credit conditions upon its customers which are too stringent.
• B) allowing its customers too much time to pay their bills.
• C) too tough in collecting its accounts.
• D) too liquid.

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Definitions:

Brachial Plexus

The brachial plexus is a network of nerves that originates from the spinal cord in the neck and travels down the arm, providing motor and sensory functions to the upper limb.

Phrenic Nerve

A nerve that originates in the neck and passes down between the lung and heart to reach the diaphragm, playing a crucial role in breathing by stimulating the diaphragm to contract and relax.

Cervical Plexus

A network of nerves in the neck that provides sensory and motor function to parts of the head, neck, and shoulders.

Cervical Nerves

The nerves that emerge from the cervical vertebrae in the neck and are involved in motor and sensory functions of the neck, shoulders, arms, and hands.