The average collection period measures the number of days ____.
A) between when a typical credit sale is made and when the firm receives the payment
B) it takes a typical check to "clear" through the banking system
C) beyond the end of the credit period before a typical customer payment is received
D) before a typical account becomes delinquent

Question

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The average collection period measures the average number of days it takes for a firm to collect payment from its customers from the time a sale is made on credit until the payment is received.

The Average Collection Period Measures the Number of Days ____