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Which of the Following Does NOT Reduce the Length of Time

question 21

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Which of the following does NOT reduce the length of time of collection float for a firm?


Definitions:

Declared Bankrupt

The legal status of an individual or entity that cannot repay the debts they owe to creditors, formally recognized by a court.

Capacity To Contract

The legal ability of a person to enter into a binding contract, typically requiring that the individual is of a certain age and sound mind.

Necessaries

Goods or services that are essential for someone’s maintenance and welfare according to their status in life and their requirements at the time of contract.

Credit

The granting of money or something of value with the expectation of repayment, or the reputation for solvency and reliability that allows an entity to borrow.

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