Increasing collection expenditures is likely to result in ____.
A) a shorter average collection period
B) reduced bad-debt losses
C) higher accounts receivable balances
D) a shorter average collection period and reduced bad-debt losses

Question

Quizplus · Accepted Answer

Increasing collection expenditures often leads to a shorter average collection period because debts are collected more quickly, and reduced bad-debt losses because more effort is put into collecting before accounts become uncollectable.

Increasing Collection Expenditures Is Likely to Result in ____