In general, companies prefer a shorter collection period for receivables.

Name: In general, companies prefer a shorter collection period for receivables.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. A shorter collection period means that the company is receiving payment from its customers at a faster rate, which improves cash flow and reduces the risk of bad debt. Longer collection periods can lead to cash flow problems and increase the costs associated with debt collection.

In General, Companies Prefer a Shorter Collection Period for Receivables