If a firm's average collection period increases, this could be because the company gave credit to customers with a low credit report.

Name: If a firm's average collection period increases, this could be because the company gave credit to customers with a low credit report.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If a company gives credit to customers with a low credit report, it may result in a longer collection period as these customers may have difficulty making payments on time.

If a Firm's Average Collection Period Increases, This Could Be