An increase in a firms average collection period average


An increase in a firm's average collection period (average accounts receivable period) generally indicates that:

a. customers are paying more promptly.

b. the cash flows of the firm have increased.

c. at least some customers are taking longer to pay.

d. an increased number of customers are taking advantage of the cash discount.

e. the sales of the firm are increasing.

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Financial Management: An increase in a firms average collection period average
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