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

question 73

Multiple Choice

If a company's average collection period is higher than the industry average, then the company might be [blank].

• 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:

Assignment

The transfer of rights, duties, or property from one party to another, often used in contexts involving contracts, leases, and various forms of personal and real property.

Delegation

The act of assigning responsibility or authority from one person to another, often used in the context of managerial roles within organizations.

Code and Restatement

Legal documents that systematically collect statutes, codes, or common law principles, simplifying and clarifying the law.

Donee Beneficiaries

Individuals or entities that receive benefits from a contract, though they are not one of the primary parties involved in the agreement.