A decreasing average collection period indicates:
A) the firm is generating more income.
B) accounts receivable is going up.
C) the company is becoming more efficient in its collection policy.
D) the company is becoming less efficient in its collection policy.

Question

Quizplus · Accepted Answer

A decreasing average collection period means that the company is collecting its accounts receivable more quickly, which indicates a more efficient collection policy.

A Decreasing Average Collection Period Indicates