An increase in the average collection period will result in___________in the operating cycle.
A) no change
B) an undetermined change
C) an increase
D) a decrease

Question

An increase in the average collection period will result in___________in the operating cycle. 
A) no change
B) an undetermined change
C) an increase
D) a decrease

Quizplus · Accepted Answer

An increase in the average collection period means that it takes longer for the company to collect its accounts receivable, which can indicate a problem with customers paying their bills on time. This can lead to a decrease in cash flow and potentially a decrease in profits, as the company may need to implement policies to encourage timely payments or write off bad debts.

An Increase in the Average Collection Period Will Result In___________in