As a general rule, the average collection period for accounts receivable should NOT exceed

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The average collection period for accounts receivable should not exceed the credit terms offered to customers. This ensures that the company is receiving payments in a timely manner and not experiencing cash flow problems. Exceeding the credit terms could indicate that the company is not managing its receivables effectively and may need to revise its collection policies or review the creditworthiness of its customers. Options A, C, and D are not directly related to determining the appropriate average collection period.

As a General Rule, the Average Collection Period for Accounts