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:

Prematurely

Occurring or done before the usual or proper time; too early.

Developmental Psychologist

A professional who studies the psychological growth of individuals, including cognitive, emotional, and social development, throughout different stages of life.

Older

Referring to individuals or entities that have existed for a significant period of time, often implying greater experience, maturity, or age compared to others.

Changes

The act or process through which something becomes different, often leading to new directions in life, behavior, or operation.