A short average collection period (ACP)could indicate that the firm:
A)offers unusually large discounts.
B)is tough in its credit policy.
C)has a very efficient credit and collection department.
D)All of the above
E)a and b

Question

Quizplus · Accepted Answer

A short average collection period indicates that a company is efficient in collecting receivables, which could be due to offering large discounts for early payment, having a strict credit policy, or having an efficient credit and collection department.

A Short Average Collection Period (ACP)could Indicate That the Firm