A decreasing average collection period could be associated with (select the one best answer)
A)increasing sales.
B)decreasing sales.
C)decreasing accounts receivable.
D)increasing sales and decreasing accounts receivable.

Question

Quizplus · Accepted Answer

The average collection period is the average number of days it takes a company to collect its accounts receivable. A decreasing average collection period means that the company is collecting its accounts receivable more quickly. This could be associated with increasing sales and decreasing accounts receivable.

A Decreasing Average Collection Period Could Be Associated with (Select