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

Name: If a company would like to reduce its average collection period, it can either offer a cash discount or increase net terms.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Offering a cash discount can help reduce the average collection period by encouraging customers to pay earlier, but increasing net terms would likely extend the period it takes for a company to collect receivables, not reduce it.

If a Company Would Like to Reduce Its Average Collection