The collection period can be used to assess the length of the company's operating cycle.

Name: The collection period can be used to assess the length of the company's operating cycle.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

The collection period measures the average number of days it takes for a company to collect payment from its customers. This can be used to assess the length of the operating cycle, which is the time it takes for a company to convert its inventory into cash. Therefore, the statement is true.

The Collection Period Can Be Used to Assess the Length