ABC Corp. extends credit terms of 45 days to its customers. Its credit collection would beconsidered poor if its average collection period was
A) 47 days.
B) 57 days.
C) 36 days.
D) 30 days.

Question

Quizplus · Accepted Answer

If ABC Corp.'s credit terms are 45 days and its average collection period exceeds this, it indicates poor credit collection. Therefore, the best choice is B, as an average collection period of 57 days is well beyond the credit terms offered by the company.

ABC Corp Extends Credit Terms of 45 Days to Its Customers