What Is the Most Likely Reason for a Company to Have

question 28

Multiple Choice

What is the most likely reason for a company to have an increase in average collection period?

• A)The company has incurred additional marketing expenses to attract customers.
• B)Customers are paying in a timelier manner.
• C)The company has tightened its credit policies for its customers.
• D)The company has become more lenient in its credit policies and is extending credit terms to maintain customers.

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