If the average collection period is 35 days,this means:
A)from the date of purchase to the date of payment is 35 days.
B)from the date of sale to the date of receipt of payment is 35 days.
C)from the date of discount to the date of receipt of payment is 35 days.
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

The average collection period refers to the average number of days it takes for a business to receive payment from its customers from the date of sale. Option A refers to the average payment period, while option C refers to the average discount period, which are not relevant in this case.

If the Average Collection Period Is 35 Days,this Means