If a company would like to reduce their average collection period, they can either reduce offer a cash discount or increase their net terms.

Name: If a company would like to reduce their average collection period, they can either reduce offer a cash discount or increase their net terms.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

Offering a cash discount can reduce the average collection period by encouraging quicker payments, but increasing net terms would extend the time customers have to pay, potentially increasing the collection period.

If a Company Would Like to Reduce Their Average Collection