Over the last year, a firm's average collection period increased from 30 days to 45 days. Thisincrease could be the result of
A) a slowdown in the economy.
B) the deterioration of the product you sell.
C) a loss of the accounts receivable manager due to a heart attack.
D) all of the above.

Question

Quizplus · Accepted Answer

An increase in the average collection period can be attributed to various factors such as a slowdown in the economy, which affects customers' ability to pay; deterioration of the product, leading to customer dissatisfaction and delayed payments; or the loss of a key accounts receivable manager, which can disrupt the collection process.

Over the Last Year, a Firm's Average Collection Period Increased