A decreasing average collection period could be associated with:
A) increasing sales.
B) decreasing sales.
C) increasing accounts receivable.
D) increasing profits.

Question

Quizplus · Accepted Answer

A decreasing average collection period means that the company is collecting payments from customers quicker, which is typically a result of stronger sales. This is because customers are paying their bills faster, which reduces the accounts receivable balance and improves cash flow.

A Decreasing Average Collection Period Could Be Associated With